Exemption for a dwelling house

Qualifying conditions for an inheritance after 25 December 2016

You will be exempt from Capital Acquisitions Tax (CAT) on the inheritance of a dwelling house if:

• the house was the only, or main, home of the disponer at the date of their death. 
• you lived in the house as your only, or main, home for the three years immediately before the date of the inheritance.
• you do not own, or have an interest in, any other house at the date of the inheritance.
• you do not acquire an interest in any other house from the same disponer between the date of the inheritance and the valuation date
• and
• the house continues to be your only, or main, home for six years after the date of the inheritance. 

Definition

A disponer is a person who gives you a gift or an inheritance. 

Exceptions to the residence conditions

The condition that the house was the disponer's main or only home at the date of their death does not apply if:

• you are a dependant relative of the disponer or of the disponer's spouse or civil partner.
• or
• the disponer was absent from the home because of mental or physical infirmity.

There is one exception to the condition that you must live in the house for three years before the inheritance. If you cease to occupy the house because of mental or physical infirmity, you will be treated as occupying the house during that absence. 

The condition that the house continues to be your only, or main home for six years after the inheritance does not apply if you: 

• are aged 65 years or over at the date of the inheritance.
• are required by reason of employment to live elsewhere.
• or
• are required to live elsewhere because of mental or physical infirmity, and this is certified by a doctor. 

Next: Qualifying conditions for a gift after 25 December 2016