Revenue has updated its guidance to reflect the changes introduced in Finance Bill 2016 in relation to the dwelling house exemption which came into effect on or after 25 December 2016.

In general, the exemption from capital acquisitions tax will now only apply to inheritances and not gifts unless the house is gifted to a dependent relative. Also the inherited property must have been the principal place of residence of the deceased person at the date of death subject to some exceptions.

These changes are detailed in the Capital Acquisitions Tax and Duty Manual and Revenue eBrief No. 04/17 on here provides more detail.