Finance Act, 1991

Reduction in estimated market value of certain dwellings.

117.—(1) In so far as an inheritance consists of a house or the appropriate part of a house—

(a) at the date of the inheritance, and

(b) at the valuation date,

and is taken by a successor who, at the date of the inheritance—

(i) is a brother or sister of the disponer,

(ii) has attained the age of 55 years,

(iii) has resided in the house with the disponer continuously for a period of not less than 5 years ending on the date of the inheritance, and

(iv) is not beneficially entitled in possession to any other house or the appropriate part of any other house,

the estimated market value of the house or the appropriate part of the house shall, notwithstanding anything to the contrary in section 15 of the Principal Act, be reduced by 50 per cent. or £50,000, whichever is the lesser:

Provided that where the house or the appropriate part of the house comprised in the inheritance referred to in subsection (1) is agricultural property within the meaning of subsection (1) of section 19 of the Principal Act and the successor is a farmer within the meaning of that subsection, the provisions of this section shall not apply.

(2) Where a house, or the appropriate part of a house to which subsection (1) relates was not in the beneficial ownership of the disponer for the period of 5 years ending on the date of the inheritance, that period of 5 years shall be deemed to include any period, immediately prior to the date on which the disponer acquired such beneficial ownership, during which the successor was residing continuously with the disponer in any other house, or the appropriate part of any other house, of the disponer.

(3) In this section—

“appropriate part”, in relation to a house, has the meaning assigned to it in relation to property by subsection (5) of section 5 of the Principal Act;

“house” means a building, or a part of a building, used by the disponer as his main or only dwelling together with its garden or grounds of an ornamental nature.

(4) This section shall have effect in relation to inheritances taken on or after the 30th day of January, 1991.