355 Mr. Gormley asked the Minister for Finance if he has received correspondence from a person (details supplied) in Dublin 6 in relation to capital acquisitions tax; if so, his views in relation to the proposals; and if he will make a statement on the matter. [1410/00]
I have received representations from the individual in Dublin 6 in relation to capital acquisitions tax, CAT. As I outlined in response to parliamentary questions last year, I have been aware for some time of the tax burden facing some individuals, particularly on the inheritance of the home where they have been residing.
Following a detailed examination of the CAT code, I addressed these difficulties in the recent budget and introduced a family home relief for CAT purposes. CAT will no longer apply on the transfer of the home on or after 1 December 1999 provided it is the principal private residence of the disponer and/or the recipient and the recipient has been living in the home for the three years prior to the transfer. It will also be a condition that the recipient does not have an interest in any other residential property. These conditions will be confirmed in the Finance Bill which will be published next month. The Finance Bill will also provide that the recipient must own and reside in the house for six years after the transfer. This condition will not apply to recipients over 55 years of age and provision will be made for those circumstances where the recipient is unable to comply with the residence requirements for reasons outside their control, for example, due to hospitalisation or work obligations. This residence condition is a change from the budget announcement where the condition was that the recipient does not dispose of the home for six years after the transfer.
