Seán Haughey (Dublin Bay North, Fianna Fail)
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87. To ask the Minister for Finance the detail of the dwelling house exemption in respect of capital acquisitions tax; if he will review the provisions of this relief in order that family members inheriting two houses as opposed to one house are not disadvantaged; and if he will make a statement on the matter. [44106/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that section 86 of the Capital Acquisitions Tax Consolidation Act 2003 provides an exemption from capital acquisitions tax on the inheritance or gift of a dwelling house in certain circumstances.

One of the qualifying conditions for the dwelling house exemption is that the beneficiary does not have an interest in another dwelling house when he or she claims the exemption.  This restriction applies whether a beneficiary already had such an interest before the inheritance or inherits more than one house as part of the same inheritance. The restriction also applies whether a house is situated in Ireland or abroad and would include, for example, a holiday home.  Where two dwelling houses are inherited at the same time, the beneficiary can qualify for the dwelling house exemption on one of the houses only where he or she disclaims the interest in the other house.

The reason for this restriction is that the exemption is designed to prevent hardship in cases where individuals are sharing a home and where one or more individuals are bequeathed the home in circumstances where they would otherwise have to sell the property in order to pay capital acquisitions tax and be left without a home. It is considered that this situation does not arise when a beneficiary owns other residential property or properties. On this basis I do not propose to change this condition of the relief.