An annual Local Property Tax (LPT) charged on all residential properties in the State came into effect in 2013. A half-year payment was due in 2013, with a full-year payment due in 2014. The LPT is collected by the Revenue Commissioners.
If you own a residential property in the State you are liable for payment of the tax. (This includes local authorities and social housing organisations.) See ‘Who is liable to pay the LPT’ below.
Residential property is any building or structure (or part of a building) which is used as, or is suitable for use as, a dwelling and includes grounds of up to one acre. The LPT does not apply to development sites or farmland.
The tax payable is based on the market value of relevant properties. The LPT is a self-assessment tax so you calculate the tax due based on your own assessment of the market value of the property. Revenue does not value properties for LPT purposes but provides guidance on how to value your property – see ‘Valuing your property’ below.
Revenue offers a range of methods for paying the tax. You can opt to make one single payment or you can phase your payments in equal instalments. Read about how to pay your LPT in 2014.
The Revenue Commissioners have announced a deadline of 31 March 2014 for people to bring their LPT affairs up to date and avoid interest or penalties. A nationwide compliance programme is due to start in April 2014. Read more here.
The Local Property Tax (LPT) replaced the Household Charge which was abolished from 1 January 2013. Household Charge arrears that were not paid by 1 July 2013 were converted into LPT and are now collected by Revenue through the LPT system. The Non-Principal Private Residence (NPPR) charge on second homes applied for 2013 and should be paid to the relevant local authority.
During March 2013 Revenue wrote to residential property owners – see ‘Who is liable to pay LPT’ below. This letter included an LPT Return form for completion, an explanatory booklet and a Revenue Estimate of LPT liability. The Revenue Estimate of LPT liability is not a valuation of a property nor should it be regarded as an accurate calculation of LPT liability. It is simply the amount that Revenue will collect from property owners if they do not submit their LPT return.
The explanatory booklet helps you to assess the value of your property – see ‘Valuing your property’ below - work out how much you will have to pay, complete the LPT Return form and decide how pay your LPT – see ‘How to apply’ below. You can read the explanatory booklet on the Revenue website (pdf) and see a sample LPT Return form (pdf).
You should have sent your completed LPT Return form back to Revenue by 7 May 2013 if submitting a paper form or by 28 May 2013 if submitting your return online through revenue.ie. The first LPT payment was due in July 2013, the exact date depends on your method of payment - see ‘Rates’ below.
All owners of residential property, including rental properties, are liable to pay the tax. The following groups are also liable for LPT:
Joint owners: If there is more than one owner they need to agree who will make the LPT return and pay the tax. If no one pays the tax Revenue can collect the Revenue Estimate of the LPT liability from any of the owners.
Rental properties: Where the residential property is rented on a normal short-term lease (less than 20 years), the landlord will be liable for LPT. Long-term leases (more than 20 years), life tenancies and situations where a person occupies a residential property on a rent-free basis over an extended period and without challenge to their right of occupation will be treated as if the occupant owns the property. In these circumstances, the occupant will be liable for LPT.
You are a liable person for the Local Property Tax if you own a residential property on the liability (or ownership) date. The liability date is 1 May 2013 for the year 2013 and, for following years, 1 November in the preceding year. So for 2014 the liability date was 1 November 2013. For 2015 the liability date will be 1 November 2014.
If a residential property is suitable for use as a dwelling but is unoccupied, it is liable for LPT. However, if the property is not suitable for use as a dwelling, it is not liable for LPT and you do not need to make an LPT return. If you think that your property is not suitable for use as a dwelling, you must notify Revenue as soon as possible after receiving your LPT return. You must also include relevant supporting documentation, for example, an engineer’s report. Revenue will consider your claim and make a decision using the documentation you provide.
If a property is a residential property on the liability date in any year (since 2013) it is a relevant residential property and is chargeable to LPT. Certain properties are exempt from LPT. You can find out more in our document on Local Property Tax: exemptions and deferrals.
Note that, even if you own an exempt property, you must still make a return to claim an exemption.
The tax is based on the chargeable value of a residential property on the valuation date. The chargeable value is defined as the market value that the property could reasonably be expected to fetch in sale on the open market on the valuation date. The valuation date is 1 May 2013 for the 4-year period until 2016. This means that the valuation of your property for LPT purposes on 1 May 2013 will stay the same for 2013, 2014, 2015 and 2016 (even if you make improvements to your property).
Valuation was by self-assessment in 2013 and these self-assessed valuations will be used until the end of 2016.
An online guide providing indicative property values is available. This guide provides average indicative values for different property types in the area. You can check the register of residential property sales, published by the Property Services Regulatory Authority (PSRA), propertypriceregister.ie, when considering the value of your property.
If you follow Revenue’s guidance, Revenue will accept your self-assessed property valuation. Revenue’s valuation guidance is intended to help property owners but each property owner must consider the specifics of their own property when working out their valuation. If Revenue has reason to believe that their valuation guidance has not been followed Revenue may query your valuation.
You do not have to include documentation when submitting your LPT Return. However you should keep copies of the information sources when valuing your property in case Revenue queries your valuation. These might include the property section of your local newspaper, information on the sales price of a similar house sold in the area, information downloaded from property websites or details taken from Revenue’s valuation guidance.
The Revenue Commissioners can legally enter a residential property for the purpose of ascertaining its chargeable value. You must permit a person authorised by the Revenue Commissioners to inspect the property if they consider this necessary.
If you did not submit a Local Property Tax return with your self-assessment of the LPT payable, the Revenue Estimate will become due and payable. The Revenue Estimate is automatically displaced when you submit a return with your self-assessed amount.
You are liable for LPT if you own a property on the liability date. The liability date for 2013 is 1 May 2013 and the liability date for 2014 is 1 November 2013. The actual charge payable on the property is based on its value on the valuation date (1 May 2013 for the period until 2016) and this does not change.
For example, if you own a property on 1 November 2014 and subsequently sell it any time before 1 November 2015 you are liable to pay LPT for 2014. In general this payment should be made before the sale of the property closes.
There is one exception to this. New and previously unused properties that were purchased from a builder or developer between 1 January 2013 and 31 October 2016 will be exempt until the end of 2016 (even if sold again in this period). So if you buy a second hand house that was previously bought for the first time in this period you are not liable for LPT until 2017.
The Local Property Tax (LPT) is based on market value bands. The first band covers all properties worth up to €100,000. Bands then go up in multiples of €50,000. If a property is valued at €1 million or lower, the tax is based on the mid-point of the relevant band at a rate of 0.18%. For properties valued over €1 million the tax is charged at 0.18% on the first €1 million of value and 0.25% on any balance in excess of €1 million, with no banding applied.
|Valuation band, €||Mid-point||Rate||LPT for a full year||2013 LPT|
|0 - 100,000||50,000||0.18%||90||45|
|100,001 - 150,000||125,000||0.18%||225||112|
|150,001 - 200,000||175,000||0.18%||315||157|
|200,001 - 250,000||225,000||0.18%||405||202|
|250,001 - 300,000||275,000||0.18%||495||247|
|300,001 - 350,000||325,000||0.18%||585||292|
|350,001 - 400,000||375,000||0.18%||675||337|
|400,001 - 450,000||425,000||0.18%||765||382|
|450,001 - 500,000||475,000||0.18%||855||427|
|500,001 - 550,000||525,000||0.18%||945||472|
|550,001 - 600,000||575,000||0.18%||1,035||517|
|600,001 - 650,000||625,000||0.18%||1,125||562|
|650,001 - 700,000||675,000||0.18%||1,215||607|
|700,001 - 750,000||725,000||0.18%||1,305||652|
|750,001 - 800,000||775,000||0.18%||1,395||697|
|800,001 - 850,000||825,000||0.18%||1,485||742|
|850,001 - 900,000||875,000||0.18%||1,575||787|
|900,001 - 950,000||925,000||0.18%||1,665||832|
|950,001 - 1,000,000||975,000||0.18%||1,755||877|
|Properties worth more than €1 million will be assessed on the actual value at 0.18% on the first €1 million and 0.25% on the portion above €1 million.|
Revenue has developed an on-line calculator that you can use to work out how much Local Property Tax is payable on your property based on your self-assessed valuation.
|Example 1: Property valued under €1 million
If the market value of my residential property is €230,000, how much tax will I have to pay in 2013?
Market value: €230,000
Value band: €200,000 to €250,000
Mid-point of value band: €225,000
Calculation: €225,000 x 0.18% = €405 for a full year.
Divide €405 by 2 = €202 (rounded down).
Answer: €202 is the amount you pay in 2013. You will pay €404 for each subsequent year up until 2016. In 2017 a new valuation will apply.
|Example 2: Property valued over €1 million
If the market value of my residential property is €1,340,000 how much tax will I have to pay in 2013?
Market value: €1,340,000
First €1 million: €1,000000 x 0.18% = €1,800
Remaining €340,000 x 0.25% = €850
Calculation: €1,800 + €850 = €2,650 for a full year.
Divide €2,650 by 2 = €1,325
Answer: €1,325 is the amount you pay in 2013. You will pay €2,650 for each subsequent year up until 2016. In 2017 a new valuation will apply.
There is a system of deferral arrangements for owner-occupiers. To be eligible for a deferral you must occupy the property as your sole or main residence. You can read more about deferrals in our document, Local Property Tax: exemptions and deferrals.
During March 2013, Revenue sent notices to all liable persons. This notice advised you of your property tax obligations and explained how to complete your property tax return.
If you owned or had a long-term lease on a property on 1 May 2013, you were a liable person and should have submited your return to Revenue on or before 7 May 2013 (see section ‘Who is liable to pay LPT’ above for further details). If you submited your return online through the Revenue website you had until 28 May 2013.
If you own more than one residential property or you are obliged to make your tax returns online you must make your return online. (Note that if you have problems making an online return you can get help in your local Revenue office, where computers are available and a Revenue official will assist you. Alternatively, you may authorise another person to file your LPT return on your behalf. You can also call 1890 200 255 to pay and file online over the telephone. You will need your property details and details of your bank account or other source from which you want the payment deducted.)
People who own exempt properties must make a return to claim an exemption. Note that if you have bought a new property since 1 January 2013 or if you are a first-time buyer who purchased a property as your main residence during 2013 an exemption from LPT applies until 2016. However you must still make a return.
In your return, you include your assessment of the valuation of your property by selecting the relevant market value band and choose a payment method. You can also claim a deferral of payment if you are eligible to do so – see ‘Voluntary deferrals’ above.
You can see a sample LPT Return form (pdf).
After submitting your return in 2013 you do not have to submit another one until 7 November 2016. You will pay the LPT every year at the same rate.
If you are a ROS customer who is a designated owner of a property(s) and you have a business digital certificate for authentication purposes you receive notification about your LPT obligations via your ROS inbox and via the email account associated with your ROS account.
You can access your residential property details and your LPT Return directly from your "My Services" page in ROS, without having to input a Property ID or PIN.
Revenue offer a range of methods for paying the tax. You can opt to make one single payment or you can phase your payments in equal instalments. You can read about how to pay the LPT in our document 'Paying the Local Property Tax'.
If you opt for payment by instalment, such as direct debit or deduction at source, payment will be spread evenly over the rest of the year.
|Liability date||1 May 2013||1 November 2013|
|Valuation date||1 May 2013||Continues to be 1 May 2013|
|Date by which you must make a paper return||7 May 2013||Returns made in 2013 remain in force except in some very limited circumstances|
Date by which you must make an online return
|28 May 2013|
|Date on which you start to pay if you are paying by deduction at source from salary/ pension/certain Government payments or making regular payments to a payment service provider||1 July 2013||1 January 2014|
|Date on which you start to pay if you are paying in instalments by direct debit||15 July 2013||15 January 2014|
|Date on which a bank single debit authority will be debited||21 July 2013||21 March 2014|
If you wish to amend your submitted return, you can contact Revenue to amend your valuation. You must submit any valuation amendments to Revenue in writing. Any amendment must be supported by evidence to explain or prove the need to decrease the value. Appropriate evidence can be in the form of recent sales or advertised house prices in the area, professional valuations or house price surveys for the area.
Each return sent out by Revenue includes a notice of the Revenue Estimate of the tax due. If you are a liable person and you do not submit a return, the Revenue Estimate will become payable by default and Revenue will collect the amount due in the normal ways, for example, by deduction at source or an attachment order. The Revenue Estimate will automatically be displaced when you submit a return with your self-assessment of the amount of LPT due.
Self-employed people: If you are self-employed and do not make your LPT Return with a self-assessment of your LPT liability, the amount set out in the Revenue Estimate will be collected using normal collection and enforcement options (for example, sheriff, court action or attachment orders). If you fail to pay your LPT, Revenue will not issue you with a tax clearance certificate. In addition, a self-employed person who fails to submit his or her LPT return on time may incur a surcharge for the late submission of his or her income tax return, regardless of whether the income tax return is submitted on time.
If Revenue does not collect the amount of LPT due, for whatever reason, then a charge will be put on your property. You will not be able to sell it without paying the tax together with interest and, where appropriate, penalties.
You can contact the Office of the Ombudsman if you are unhappy about the way in which Revenue has handled any aspect of your tax affairs. The Ombudsman's staff examine complaints about the administrative actions of government departments and offices, including Revenue.
In general, because LPT is a self-assessed tax, formal appeals only arise in a small number of situations.
If you do not agree with a Revenue Estimate you can displace it by submitting a return with your own self-assessment.
Since Revenue has compiled a register of residential properties from various sources there may be errors about ownership of some properties. If you got a LPT Return form and you do not consider yourself a liable person for that property you should notify Revenue in writing within 30 days of receiving the letter. You should include an explanation of why you do not consider yourself a liable person, the details of the person you think is the liable person (name, address and PPS Number) and supporting documentation. It is very important that you contact Revenue since if the error is not corrected you are liable to pay the tax. Revenue will use the information you supply to make a determination on whether you are a liable person. If you do not agree you can appeal this determination to the Appeal Commissioners.
If you disagree with Revenue on other matters (for example, whether the property is residential, the valuation or whether you can defer payment) and the matter cannot be resolved, Revenue will issue a formal Notice of Assessment or a formal decision on the matter to you. Your right to appeal to the Appeal Commissioners will be set out clearly on the notices. However you must make a return and pay any tax due before you can appeal the Notice of assessment or any other Revenue decision.
Local Property Tax (LPT) Branch
P.O. Box 1
Tel:+353 (0) 1 702 3049 (for calls from outside ROI only)
Locall:1890 200 255
In January 2012, the Minister for Environment, Community and Local Government established an Inter-Departmental Group on Property Tax. This Group considered the design of a property tax to replace the Household Charge. You can read the Report of the Inter-Departmental Group ‘Design of local property tax’ (pdf). The legislation governing the tax is Finance (Local Property Tax) Act 2012 (pdf) as amended by the Finance (Local Property Tax) (Amendment) Act 2013 and consolidated in the Finance (Local Property Tax) Act 2012 (as amended) (pdf).
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 8pm) or you can visit your local Citizens Information Centre.