Local Property Tax (LPT)

  • LPT is the tax payable on the market value of residential properties in Ireland.  
  • A half year charge applies for 2013.  
  • 2014 LPT will apply on a full year basis.  

  • Residential property means any building or structure which is in use or is suitable for use as a dwelling and includes any shed, outhouse, garage or other building or structure in any yard, garden, usually adjoined with that building. 

  • A person is liable to LPT as follows:

    (a) owners of a residential property,

    (b) landlords for the properties rented for less than 20 years and leasees who have an interest of 20 years or more,

    (c) where 2 or more persons have an interest or right in to a residential property, these persons will be jointly and separately liable for the LPT,

    (d) trustees of trusts that holds properties or has power to appoint property to persons,

    (e) personal representative of an estate of a person who was previously a liable person,

    (f) persons who have a life interest in a residential property,     

  • Exclusions:

    • Property has been vacated by occupant for a period of at least 12 months by reason of long term medical or physical infirmity (must be certified by a registered medical practitioner).  If the period is less than 12 months and the registered medical practitioner is satisfied the person is unlikely to resume occupation, exclusion applies provided the property is not occupied by another person.
    • The property used exclusively by the care of individuals suffering from long term mental or physical infirmity and is registered under Section 4 Heath (Nursing & Home) Act 1990,
    • Newly constructed residential properties that have been completed but not sold or not occupied as a dwelling, have not produced income and are held as trading stock.
    • Property owned by a charity or body established by statute that is used solely or primarily to provide special needs accommodation.
    • Houses located in unfinished housing estates (ghost estates) – a list of the relevant estates is available.
    • Registered Nursing Home.
    • Mobile Homes, vehicles or vessels.
    • Properties certified to having significant pyritic damage, temporary 3 year exemption and a certificate is required.
    • Properties fully subject to commercial rates, may apply to guest houses and bed & breakfasts.
    • Diplomatic properties.
    • Residential properties operated by charities for recreational activities connected with its charitable purposes, i.e. girl guides, scouts, etc.
    • Residential properties purchased or adapted for occupation by permanently and totally incapacitated individuals, where an award has been made by PIAB or a court or where a trust has been specifically established for the benefit of such an individual.  Adaptation costs can’t exceed 25% of the market value before property is adapted.
    • New or previously unused properties purchased from a builder or developer.  Purchases in 2013, 2014, 2015 and 2016 will be exempt from LPT.
    • First time buyer of second hand properties will be exempt from LPT for 2013 to 2016 in relation to purchases in 2013 only. 
    • Please also note that the NPPR charge for non-private principal residence will be applicable for the calendar year 2013 and is payable 30th June 2013 and is €200 per property.  This charge will cease from 1st January 2014.

 The amount of LPT payable:

1. Rate

Property value of ? to €1m is – 0.18%

Property value > than €1m is – 0.25% 

2. Valuation:

  • Based on the market value at 1st May 2013.
  • The property will consist of residential property and property and land not exceeding 1 acre and this value will be valid for LPT payable up to 31st December 2016.
  • Bands within €50,000 up to €1m – tax calculated by applying the tax rate to the midpoint of the band.
  • Filing dates are 7th May 2013 for paper filings and 28th May 2013 for returns filed on ROS. 
  • LPT returns must be filed before tax is paid.
  • Online filing applies to a person who owns more than 1 residential property and a person already obliged to file online and companies who have residential properties.
  • Late delivery of a return is where a person has not filed their LPT return, a surcharge will apply. 

 Payment options in respect of LPT liability are:

  • You can make a single payment
  • Pay in instalments from 1st July 2013 to 31st December 2013
  • Online payment similar to motor tax model.

 Please contact Mark Butler or Maura Duffy of this office for further details.

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