Local Property Tax - LPT
- Local Property Tax - LPT
- Relevant Contracts Tax - RCT
- Income Tax Returns & Directors' Returns
- Corporation Tax
- Value Added Tax (VAT)
- Capital Gains Tax
- Capital Acquisitions Tax & Inheritance Tax
- Rental Property Tax
- Tax Problems, Arrears & Revenue Audits
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- Applies to residential property only
- In general the owners of the property are liable to pay the tax
- In the case of jointly owned property, any one of the owners can submit the return.
- The owner on the ownership date is liable for the tax. The ownership date this year is 1st May and will be 1st November in the preceding year from 2014 onwards. The ownership date for 2014 is 1st November 2013.
- The return date for 2013 is 7th May, unless it is filed online, then it is 28th May.
- If you already are registered for ROS you must file online. If you own more than one property you must file online. To file online, go to www.revenue.ie and click on- log in to LPT online. If you have received an LPT letter from Revenue you should use the property ID on the letter, but you can file without it. Those who possess a ROS digital cert should be able to file directly through ROS, but can file through the Revenue homepage if they wish.
- Multiple properties Information received from Revenue indicates that taxpayers will have the facility to file multiple properties on one return and that when the ID for one property is entered, a full list will appear. We believe this could be problematic because the Revenue information available to date has, in a lot of cases, been incorrect. In any event each property can be filed individually.
- The amount due is 0.18% of the band in which the value of the property falls up to €1M and increases to 0.25% on the amount over €1M. The first band is values up to €100,00 after which the bands are in units of €50,000 and the valuation is 0.18% of the middle of the band. See appendix attached.
- LPT is normally only calculated on the residence and a maximum of one acre attaching if relevant. Facilities attaching to the home, tennis court, swimming pool etc must be included as part of the valuation even if not part of the acre.
- LPT is a self-assessed tax. This means that the owner is responsible for valuing the property. The Revenue will accept your valuation at face value but you will be subject to penalties and interest should they challenge your valuation and find that you have undervalued.
- The Revenue website lists a number of ways to value your property. We recommend you visit www.propertypriceregister.ie which lists sale prices of all properties over the last three years. You can also visit property websites such as www.myhome.ie or www.daft.ie. The alternative is to engage a local estate agent to give a written valuation. You should not rely on the Revenue valuation unless you agree with it, as it only an estimate that will be used as an amount to pursue you for if you dont file.
- LPT can be paid in one single payment or in phased payments from 1st July to the end of the year. There is also the option of having the payments deducted through your wages or social welfare payments such as pensions etc
- There are full & partial deferral options available but these apply only to those on low incomes. Details are on the Revenue website. The amount deferred carries an interest charge of 4% per annum. The deferred amounts and interest will attach to the property and will have to be paid before the house is sold or transferred. Deferral is not available to landlords or for second homes.
- New and unused properties purchased from a builder or developer between 2013 and 2016 are exempt until the end of 2016.
- Properties purchased by first time buyers in 2013 are exempt to the end of 2016. This also includes when only one member of the couple is a first time buyer.
- Properties in unfinished estates as specified by the Minister for Environment are exempt
- Properties certified as having significant pyritic damage are exempt
- Properties vacated by a person for 12 months or more due to long-term illness or for less than 12 months if the individuals doctor is of the opinion that the person is unlikely to return are exempt. The exemption ceases once the house is occupied again by anyone.
- Even if your property is exempt or you are claiming a deferral you must file a LPT return and make the appropriate claim.
- The household charge is abolished from 1st January 2013. Anybody who has not paid their 2012 household charge by 1st July will have it capped at €200 and added to their LPT liability, and Revenue will assume responsibility for collecting it.
- The €200 NPPR, or second home charge will be due for 2013, but will be abolished thereafter. This should be paid through the local authority see www.nppr.ie
- Self employed people who rely on getting a Tax Clearance Cert to renew licenses etc for their businesses should be aware that if their LPT is not up to date the application will be refused. In addition their Income Tax Return even if filed on time will be deemed to be late and the normal surcharges will apply.
- If Revenue write to you and you are not the owner, or not liable for the tax you should write back immediately, giving full details of the owner or person liable to the best of your knowledge. Otherwise they will pursue you for the estimated assessment.
For more detailed information visit the Revenue Commissioners homepage www.revenue.ie where there is a section dedicated to this including a comprehensive list of frequently asked questions.
To contact Westland Tax & Accountancy. Email firstname.lastname@example.org website www.wta.ie or contact Pat 086 8231823