Dwelling House Relief allows for a residential property to be passed to an individual free of Capital Acquisitions Tax (CAT), once certain conditions have been met.

Due to this relief being “used in a manner that was outside the original intention”, The Minister for Finance proposed a number of changes in the last budget, which were signed into law on the 25th December 2016.

In order to avail of this relief the following conditions must be met:

On Inheritance

  • Dwelling must have been occupied by the disponer as his/her only main residence at date of death. An exception is made if the disponer does not occupy the dwelling for health reasons i.e., care in a nursing home.
  • The beneficiary cannot have any interest in any other dwelling at the date of inheritance.
  • The beneficiary must occupy the dwelling 3 years prior to inheritance. If the dwelling has been replaced during these 3 years, both properties must have been occupied for 3 out of the 4 years prior to inheritance.
  • The beneficiary must continue to occupy the dwelling as their main residence for 6 years after the inheritance in order to avoid a clawback of relief. Any absence for employment reasons may be disregarded.


  • Relief applies where gifted to a dependant relative of the donor. A dependant relative is defined as:
    • Over 65 years of age, or
    • Incapacitated due to a physical or mental infirmity.
  • Disponer is not required to occupy the dwelling in these circumstances


The above article is for general use only and does not constitute advice. It is accurate based on date of publication and further clarification on possibly rule changes should be sought.

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