Gift and Inheritance Tax – Dwelling House Relief – April 2017
Until 23rd December 2016 a person could give a gift of a house to another person without the recipient having any liability to gift or inheritance tax. Section 86 of the Capital Acquisitions Tax Consolidation Act 2003 provided that where a person had lived in a dwelling house owned by another person for a period of three years, he or she could then receive the house as a gift or inheritance tax-free provided that certain conditions were met, such as for example that the beneficiary did not own or part-own another dwelling. The provision was a popular means of transferring a family home to a son or daughter in a tax-efficient way. However, the Finance Act 2016 has limited this relief so that now it can be availed of only where a house is received as an inheritance and not as a gift, unless the recipient is elderly or incapacitated.
