31 December 2018

Capital Acquisitions Tax - Dwelling House Exemption

Part 24 of the Capital Acquisitions Tax Manual has been updated in section 24.3.3 in relation to the dwelling house exemption and the requirement that a successor can not have an interest in another dwelling house at the date of an inheritance. The updated manual:

  • includes an anti-avoidance provision introduced by Finance Act 2018 (section 52) that deems successors who have placed previously owned dwelling houses into discretionary trusts, of which they are a beneficiary, to have a beneficial interest in such houses at the date of the inheritance of a subsequent dwelling house,
  • and
  • outlines Revenue's approach following a recent High Court judgement that a successor can not ;have a beneficial interest in a dwelling house forming part of the residue of an estate until the estate has been ascertained.