Case study: Calculating deferrals of Local Property Tax (LPT)

Case studies

Example 1: Couple (no outstanding mortgage) who qualify for full deferral

Seán and Eileen are married and owner-occupiers. They have calculated that their LPT liability for 2015 is €405. Their estimated gross income for 2014 is €23,000. They are under the limit (€25,000) to qualify for a full deferral so they can decide to opt for a full deferral of their LPT liability. A charge for the deferred amount, including interest, will be placed on the property.

Example 2: Single person (no outstanding mortgage) who qualifies for partial deferral

Emma is single and an owner-occupier. She has calculated that her LPT liability for 2015 is €315. Her estimated gross income for 2014 is €18,000. Therefore her gross income is over the limit (€15,000) to qualify for a full deferral but under the limit (€25,000) to qualify for a partial (50%) deferral.

If Emma decides to opt for a partial deferral she must confirm which payment option she will use to pay the balance of her LPT (€157.50). A charge for the deferred amount, including interest, will be placed on the property.

Example 3: Single person (with mortgage) who qualifies for partial deferral

Ross is single and an owner-occupier. He has calculated that his LPT liability for 2015 is €202. His estimated gross income for 2014 is €27,000 and his anticipated gross mortgage interest for 2014 is €6,000. To qualify for a full deferral Ross’s gross income must not exceed €15,000 plus 80% of his gross mortgage interest:

Gross income threshold: €15,000 + 80% of Ross’s gross mortgage interest (80% of €6,000): € 4,800

Ross’s adjusted income threshold for full deferral = €19,800

As Ross’s gross income (€27,000) is greater than his full deferral adjusted income threshold (€19,800) he does not qualify for a full deferral. However, he may qualify for a partial deferral.

To qualify for a partial deferral Ross’s gross income must not exceed €25,000 plus 80% of his gross mortgage interest:

Gross income threshold: €25,000 + 80% of Ross’s gross mortgage interest (80% of €6,000): €4,800

Ross’s adjusted income threshold for partial deferral = €29,800

As Ross’s gross income (€27,000) is less than his partial deferral adjusted income threshold (€29,800) he qualifies for a partial (50%) deferral.

Page edited: 26 February 2015