Inheriting a derelict property is 'worst thing' to happen

Inheriting a derelict property can prove a nightmare due to capital gains taxes and derelict site levies, councillors in Mayo have claimed. 

The matter was raised at the January meeting of Mayo County Council during a wider discussion on derelict properties in the county.

Westport-based Cllr Brendan Mulroy said that "sometimes the worst thing that can happen to someone is to inherit a derelict property".

“If you don’t get on with your relatives the best thing they could do is to leave you property because you then face an inheritance tax of 33%. This is happening to a lot of people and they would be better off inheriting a bush in a barn because they cannot pay that inheritance tax. I would hate to see someone who inherits a house being hounded by the council or Revenue.” 

Cllr Mulroy said that establishing ownership of a property can also be contentious.

“Sometimes it is nearly impossible to get the owner of a house to come forward, and there is no history there. Dereliction is a nasty piece of business but there are people who, through no fault of their own, inherit a derelict property and it is a nightmare.”

Cllr Patsy O’Brien said it is wrong for CPOs and derelict site levies to be applied in such cases.

Cllr Gerry Coyle said it was not right to target derelict properties on farmland, adding: “You can’t just go into some farm with an old building there and say do it up. People haven’t the money to do that. Some of these properties are still in the old people’s names. If they hand it over to the son or daughter now, they are caught for capital gains tax, but if they are left it in a will, they are allowed to inherit up to the value of €400,000. There are different aspects to be looked at.” 

Cllr Michael Kilcoyne said if a person is served with a derelict site notice, they can apply for planning permission and then wait until the end of the five or six-year term before doing up the property.

"Sure, that is crazy stuff," he noted.

• Published as part of the Local Democracy Reporting Scheme.