Dáil Éireann Debate, Tuesday - 15 January 2019
210. Deputy Michael McGrath asked the Minister for Finance if his Department or the Revenue Commissioners have an estimate of the refund of tax that may be due to persons arising from a recent High Court decision relating to the dwelling house exemption; and if he will make a statement on the matter. [1112/19]
View answerI am advised by Revenue that it is a qualifying condition of the dwelling house exemption that a person inheriting a dwelling house cannot have an interest in another dwelling house at the date of the inheritance. A recent High Court judgement held that a person inheriting a dwelling house cannot have a beneficial interest in a dwelling house forming part of the residue of an estate until the assets for distribution have been ascertained; that is, on a later date than the date of the inheritance.
The facts of the relevant case were that an individual had inherited more than one dwelling house from the same disponer and both dwelling houses formed part of the residue of the estate. The judge held that the individual did not have a beneficial interest in either of the dwelling houses at the date of the inheritance and qualifies for the exemption. Revenue have issued revised guidance on foot of the judgement to clarify that a dwelling house forming part of the residue of an estate is not to be taken into account in determining whether a successor has an interest in another dwelling house at the date of an inheritance.
Due to the nature of the information supplied on the capital acquisitions tax return it is not possible to provide an estimate as requested by the Deputy. Having regard to the specific circumstances of the case concerned, however, Revenue does not anticipate that many beneficiaries will be affected by this judgement.
