CAT

Question 1

How long do non-domiciled individuals have to wait until they are considered resident or ordinarily resident, for CAT purposes?

Answer 1

Five Years

Question 2

For the favourite niece/nephew provision - which business assets apply?

Answer 2

1. Sole Traders’ business/partnership
2. Farm and assets used in farming trade
3. Shares in a private trading company (must be wholly, or mainly trading)

Question 3

What are the conditions to qualify for favourite niece/nephew provision?

Answer 3

1. Must be a blood nephew/niece
2. (Re: shares in a private company) - company must be a private company controlled by the disponer, and the disponer must also be a director of the company
3. Must have worked on a full-time basis for five years up to the date of gift or inheritance.

Question 4

What are the conditions to qualify for dwelling house exemption?

Answer 4

1. Dwelling house must have been the PPR of the disponer at the date of his/her death
2. Dwelling house must have been continually occupied by the beneficiary for a period of three years, before inheritance
3. Beneficiary must not be entitled to interest in any other dwelling house at the date of the inheritance
4. Beneficiary must continue to occupy the dwelling house as his/her only main residence for a period of 6 years after the inheritance (This does not apply if the beneficiary is 65 years or older)

Question 5

How can the Dwelling House exemption be clawed back?

Answer 5

1. The house is sold, and not replaced by another as your main residence
2. You no longer live in the house as your main residence (unless due to ill health or employment commitments)

• *All this is only relevant during the six year period after qualifying for exemption**
• Clawbacks do not apply if successor was 65 or older at date of inheritance*