Question asked:


Our client is inheriting a 50% share of a dwelling house and surrounding 11 acres (he was the joint owner of both with his sibling who has now passed). Dwelling house relief will only apply to the dwelling house and up to one acre. Does the solicitor have to separate the remaining 10 acres to a separate folio or is it sufficient to obtain a separate valuation on each for the purpose of claiming dwelling house relief?
Also does the fact that they were joint owners of the property affect his claim of dwelling house relief?

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Posted by (Questions: 3, Answers: 0)
Asked on 6 December 2018 9:20 am
Private answer

I think it is sufficient to obtain a separate valuation on each.

Joint ownership: it depends on Revenue accepting that his "part" includes an "appropriate part" within the meaning of CATCA 2003 s 5(5) - CATCA 2003 s 86(1)(definition of "dwelling house").

“appropriate part”, in relation to property referred to in subsection (2), means that part of the entire property in which the benefit subsists, or on which the benefit is charged or secured, or on which the donee is entitled to have it so charged or secured, which bears the same proportion to the entire property as the gross annual value of the benefit bears to the gross annual value of the entire property, and the gift shall be deemed to consist of the appropriate part of each and every item of property comprised in the entire property.

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Posted by (Questions: 5, Answers: 4911)
Answered on 26 December 2018 1:10 pm