Revenue eBrief No. 073/23
20 March 2023
Capital Acquisitions Tax Manual - Part 24 Dwelling House Exemption
Section 86 of the Capital Acquisitions Tax Consolidation Act 2003 provides an exemption from capital acquisitions tax for inheritances of a dwelling house that is the only or main residence of the disponer and is inherited by a successor who meets certain conditions. The exemption can apply to a gift to the extent that the gift is made to a dependant relative (as defined in the legislation).
The exemption will cease to apply if the dwelling house is sold or disposed of within six years of the date of the inheritance.
Capital Acquisitions Tax Manual - Part 24 Dwelling House Exemption provides general guidance on the exemption. It has been amended at paragraph 5.1 to clarify that the exemption will not cease to apply if the dwelling house is sold within six years and the full proceeds from the sale are used to purchase a replacement dwelling house.