Valuation date and the value of benefits

Rights of residence

A right to reside in a property is a right to live in that property only. An exclusive right to live in a property is a life interest. A life interest in a property means that you own that property for your life.

A right of residence is chargeable to tax. Use myAccount or Revenue Online System (ROS) to file your IT38S return.

The person who has received the property on which the right of residence is charged can claim a deduction for that right. A deduction of:

  • one-tenth of the value of the property is allowed for a right of residence
  • one-fifth of the value of the property is allowed for a right of residence, support and maintenance.

How to calculate taxable value

You can calculate the taxable (market) value of a right of residence by:

  1. Dividing the annual value of the right by the annual value of the property.
  2. Multiplying this amount by the market value of the property.

A benefit of rights charged on a property may also qualify for Agricultural Relief or Business Relief.

Next: Annuities and other periodic payments