Description

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In this episode, Paula Byrne delves into the specifics of dwelling house relief as it applies to capital acquisition tax, explaining the conditions and exceptions for receiving a house or apartment tax-free through inheritance or as a gift. She emphasizes the importance of understanding qualifications such as the main home requirement, dependent relative provisions, and the necessity for beneficiaries to live in the dwelling for certain periods.

5 Key Learnings:

1. Introduction to Dwelling House Relief: Explanation of what dwelling house relief is and its distinction from CGT relief.
2. Conditions for Tax-Free Inheritance: Criteria for inheriting a dwelling house or apartment tax-free, including the necessity of it being the main home of the disponer and exceptions for dependent relatives.
3. Three-Year Residency Requirement: Requirement for the beneficiary to have lived in the donor's main home for three years prior to inheritance and the restriction on owning other property.
4. Six-Year Residency Post-Inheritance: Obligation for beneficiaries under 65 to live in the inherited property for six years after inheritance, along with rules for reinvestment upon selling the inherited property.
5. Gift Provisions and Dependent Relative Clause: Additional conditions for qualifying under dwelling house relief when receiving a property as a gift, including the requirement for the beneficiary to be a dependent relative.

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