Local Property Tax (LPT)

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Presentation transcript:

Local Property Tax (LPT) Took effect on 1 July 2013. Applies to residential property holders. Based on the market value of their property on 1 May 2013. This valuation will be valid up to and including 2016. Market value determined on a self assessment basis.

Local Property Tax (LPT) For LPT purposes, residential property means any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling and includes any shed, outhouse, garage or other building or structure and includes grounds of up to one acre.

Local Property Tax (LPT) Liable person for LPT Owners of Irish residential property, regardless of whether they live in Ireland or not. Local authorities or social housing organisations that own and provide social housing. Lessees who hold long-term leases of residential property (for 20 years or more). Holders of a life-interest in a residential property.

Local Property Tax (LPT) Liable person for LPT Persons with a long-term right of residence (for life or for 20 years or more) that entitles them to exclude any other person from the property. Landlords where the property is rented under a short-term lease (for less than 20 years). Personal representatives for a deceased owner (e.g. executor/administrator of an estate).

Local Property Tax (LPT) Liable person for LPT Trustees, where a property is held in a trust. Where none of the above categories of liable person applies, the person who occupies the property on a rent-free basis and without challenge to that occupation.

Local Property Tax (LPT) Liability date 2013 - 1 May 2013 2014 – 1 November 2013 2015 – 1 November 2014

Local Property Tax (LPT) LPT exemptions New and previously unused properties purchased from a builder/developer between 2013 and 2016 Properties purchased by first time buyers in 2013 Properties affected by pyrite damage Residential properties used for recreational activities connected with a charity Residential properties occupied by permanently incapacitated individuals

Local Property Tax (LPT) Calculation of LPT 0.18% applies to values up to €1 million For properties worth more than €1 million, 0.18% applies to first €1 million and 0.25% to the remainder Valuation bands are used When a property falls within a valuation band, the tax is calculated on the mid-point of that band

Local Property Tax (LPT) Calculation of LPT 2013 was a half year so the LPT due is equal to 6/12 of the annual amount 2014 and subsequent years are full years

Local Property Tax (LPT) Payment dates Payment dates dependent on method of payment Can pay by monthly direct debit spread across the year Pay by cash/debit/credit card – due date is 1 January Pay online – due date 21 March

Local Property Tax (LPT) Return filing dates 2013 – Paper returns due by 7 May 2013 2013 – Online filing by 28 May 2013 Return covers full period 2013-2016 and next return due 7 November 2016 unless circumstances change

Local Property Tax (LPT) Deferrals Four categories of deferral: Deferral based on income thresholds. Deferral based on personal representative of a deceased person Deferral based on personal insolvency Deferral based on hardship grounds Interest will be charged at 4% per annum on amounts deferred. Deferral is not an exemption.

Local Property Tax (LPT) Deferral based on income threshold If gross income for an individual does not exceed €15,000 (or €25,000 for a couple) 100% deferral is allowed. These thresholds are increased by 80% of mortgage interest paid

Local Property Tax (LPT) Deferral based on income threshold If gross income for an individual does not exceed €25,000 (or €35,000 for a couple) 50% deferral is allowed. These thresholds are increased by 80% of mortgage interest paid

Local Property Tax (LPT) Deferral based on personal representative of a deceased person Where a liable person who was the sole owner of a property dies, that person’s personal representative may apply for a full deferral of LPT for a maximum period of three years commencing with the date of death.

Local Property Tax (LPT) Deferral based on personal insolvency A person who enters into a Debt Settlement Arrangement or a Personal Insolvency Arrangement under the Personal Insolvency Act 2012 may apply for a deferral of LPT for the periods for which the insolvency arrangement is in place.

Local Property Tax (LPT) Deferral based on hardship grounds The objective of this category of deferral is to provide for situations where a liable person, who does not qualify for an income based deferral, was in a position to meet his or her LPT liability until something happened to cause a significant financial loss or cost. It is not restricted to owner-occupiers.

Local Property Tax (LPT) Deferral based on hardship grounds Where a person suffers an unexpected and unavoidable significant financial loss or expense within the current year, as a result of which he or she is unable to pay the LPT or maintain phased payment arrangements, without causing excessive financial hardship, then he or she can apply for a full or partial deferral.