Dáil Éireann debate -
Wednesday, 16 Apr 2003

Vol. 565 No. 4

Written Answers. - Inheritance Tax.

John Cregan

Question:

68 Mr. Cregan asked the Minister for Finance the way in which inheritance tax will be calculated in the case of the transfer of a house, in the joint names of mother and daughter for over 20 years following the death of her husband and father, but which has now transferred to the daughter following the death of the mother; if CAT is due since the house has been in residential use up to 2001 by the mother but not the daughter; and if he will make a statement on the matter. [11250/03]

Minister for Finance (Mr. McCreevy)

I am advised by the Revenue Commissioners that the position in this case is that the deceased mother's interest of a one-half share in the dwelling house passes on the date of her mother's death by survivorship to her daughter. Accordingly, the daughter takes an inheritance of this one-half of the value of the dwelling house from her mother. Under the rules of inheritance tax, a child is entitled to take from a parent benefits tax-free up to a certain amount – group A threshold amount – provided no other benefits have been taken from either parent since 5 December 1991. The group A threshold amount for benefits taken during 2001 is €402,253.02. Where a benefit exceeds this amount. the excess is liable to inheritance tax at the rate of 20%. It would appear that the daughter would not be entitled to dwelling house exemption on the share of the dwelling house taken from her mother on the grounds that she has not lived in the house for the three-year period prior to the date of her mother's death.