A Ministerial amendment at the Committee stage of the Finance Bill proposes to make significant changes to the current exemption for gifts or inheritances of a dwellinghouse as provided for under Section 86 of the Capital Acquisitions Tax Consolidation Act 2003.
The proposed amendments restrict the exemption to inheritances of dwellinghouses and the house must be occupied by both the disponer and the beneficiary on the date of the inheritance.
The exemption will now only apply to gifts made to dependent relatives (defined as an individual aged 65 years or over or permanently or totally incapacitated by reason of mental or physical infirmity from maintaining himself) .
It is expected that the Finance Bill will be signed into law before the end of the year.
If you have considered availing of this exemption it is important that you take immediate action.
