Gay Mitchell (Dublin South Central, Fine Gael)
Link to this: Individually | In context

Question 250: To ask the Minister for Finance if the Revenue Commissioners will consider a grant of postponement of liability to the collection of the inheritance tax on hardship grounds in the circumstances of a person (details supplied) in Dublin 8; and if he will make a statement on the matter. [14675/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

I am informed by the Revenue Commissioners that under the Capital Acquisitions Tax Consolidation Act 2003 the Revenue Commissioners do not have the power to waive gift or inheritance tax properly due. However Section 59 of that Act does provide for the postponement of tax by the Commissioners where excessive hardship would be involved. The Revenue Commissioners Statement of Practice (SP-CAT/1/90) outlines the practice and procedure to be followed in relation to applications for postponement of payment of tax and each case is examined on an individual basis. The Statement of Practice can be accessed on the Revenue Commissioners Website: www.revenue.ie.

However, given the circumstances of the person concerned he may be entitled to claim dwelling house relief under Section 151 of the Finance Act 2000 on this inheritance. This Section provides that inheritances of a dwelling house taken on or after 1 December 1999 will be exempt from capital acquisitions tax provided that the following conditions are complied with—

the recipient must have occupied the dwelling house continuously as his or her only or main residence for a period of three years prior to the date of the gift or inheritance

the recipient must not at the date of the gift or inheritance be beneficially entitled to any other dwelling-house or to any interest in any other dwelling house

the recipient must continue, except where such recipient was aged 55 years at the date of the inheritance, or has died, to occupy that dwelling-house as his or her only or main residence for a period of 6 years commencing on the date of the gift or inheritance.

If the person concerned has any further queries in relation to the dwelling house exemption he can contact the staff of the Revenue Commissioners Capital Acquisitions Tax Advisory Unit on Lo-call 1890 20 11 04 who will provide him with any further information required. Further information is also available on the Revenue Commissioners Website: www.revenue.ie.