The High Court upheld the finding of the Tax Appeals Commission in favour of the taxpayer in relation to the CAT dwelling house exemption where an individual inherited the family home along with an interest in four other properties and still met the conditions in order to qualify for the exemption.

Revenue have now confirmed that they will not be appealing the case and have updated the CAT guidance such that a successor cannot have an interest in a dwelling house forming part of the residue of an estate until the estate has been ascertained. Revenue’s guidance on the dwelling house exemption has also been updated for anti-avoidance provisions introduced by Finance Act 2018 that deems successors who have placed previously owned dwelling houses into discretionary trusts, of which they are a beneficiary, to have a beneficial interest in such houses at the date of the inheritance of a subsequent dwelling house.