Revenue have published eBrief No. 04/2017 in relation to Finance Act 2016 changes to section 86 (Dwelling House Exemption) and Schedule 2 (Group Thresholds) CATCA 2003.
There are two fundamental changes to Dwelling House Exemption.
- The exemption will only be available for inheritances, the only exception where a person gifts a dwelling house to a dependent relative.
- The inherited dwelling house must have been the deceased person’s principal private residence at the date of his or her death. This requirement will be relaxed in situations where the deceased person had to leave the house before the date of death because of ill health; for example, to live in in a nursing home.
These changes will take effect on or after 25 December 2016.
