Dwelling house exemption

In certain circumstances, outlined below, inheritances of dwelling houses may be exempt from CAT.

• the dwelling house must be the principal private residence of the disponer (someone who legally transfers their own property another person) at the date of their death
• the dwelling house must have been continuously occupied by the beneficiary as their only or main residence for a period of three years before the date of the inheritance
• the beneficiary must not be entitled to an interest in any other dwelling house at the date of the inheritance

  and

• the beneficiary must continue to occupy the dwelling house as their only or main residence for a period of six years after the date of the inheritance.

Gifts of dwelling houses to dependent relatives of a donor may also qualify for the exemption in certain circumstances. A dependent relative is a direct relative of the donor, or of the donor's spouse or civil partner, who is permanently and totally incapacitated because of physical or mental infirmity from maintaining himself or herself or who is over the age of 65. Where a gift of a dwelling house qualifies for the exemption, the dwelling house does not have to have been the principal private residence of the donor.