High Court decision: Dwelling House Exemption

Oct 01, 2018

The High Court upheld the finding of the Tax Appeals Commission in favour of the taxpayer in relation to the entitlement of dwelling house exemption on the inheritance of a family home, where the beneficiary also inherited an interest in four other properties from the deceased’s estate.

The High Court ruled that at the date of inheritance of the dwelling house, the beneficiary was not beneficially entitled to any other dwelling house or to any interest in any other dwelling house within the meaning of section 86(3)(b) CATCA 2003 and therefore met the exemption criteria for the relief.  The beneficiary only became beneficially entitled to the interests in the other properties once the estate had been decided upon, which was some months after the date of the inheritance.

The judgement of the High Court has not been published yet. You can read the Tax Appeals Commission determination at this link