Eligibility for purchase tax relief under Regulation 11 of the Purchase Tax Regulations is granted to the purchaser of the right. In the case of a minor with a disability, they are eligible for relief only when the property is registered in their name.
At first glance, when parents purchase the apartment (and not the minor with a disability), there is no entitlement to tax relief. However, the Tax Authority has adopted a lenient interpretation due to the social purpose of the regulation. According to this interpretation, relief will also be provided when parents purchase the apartment, provided the purchase is necessary due to:
The minor's special needs
The type of disability
The previous living conditions of the minor
In such cases, the relief granted to the parents will be considered as if it were utilized by the minor, even though the apartment is registered in the parent’s name. This means that in the future, the minor will be able to utilize only one additional relief under Regulation 11(a) of the Purchase Tax Regulations.
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