Local Property Tax

Local Property Tax - recent government changes that you need to know

Revenue recently announced that it will NOT contest Lower Self-Assessed Values for the Local Property Tax (LPT). That is all fine and clear until such time as,

a) Revenue change their policy, or

b) you have to sell or mortgage the house.

If you sell or mortgage your house, you will have to get proof that the LPT has been paid. If the dwelling house is valued for the LPT assessment below what it is sold for, or the market value at which it is mortgaged, this will give rise to a difficulty you fall within one of Revenue’s Clearance Conditions.

The Revenue has 3 Clearance Conditions:

Clearance Guideline Condition 1

Where a property is sold for a price that does not exceed€350,000.00, General Clearance will apply.

Clearance Guideline Condition 2

(Allowable Valuation Margin) “where the sale price is not more than 50% (80% if the property is in Dublin City and County) higher than the upper limit of the band declared,

And

in the case of properties for which the declared chargeable valuation exceeds €1,000,000.00, where the sale price is not more than 50% (80% for properties in Dublin City and County)

higher than the chargeable valuation”.

Clearance Guideline Condition 3

(Expenditure on Enhancements.) Where the sale price exceeds the Valuation band/Chargeable Value declared, any such excess must be within the specified margins set out in General Condition of Clearance 2, adjusted by the amount of any verifiable expenditure on refurbishment or improvement since the 1st May 2013. The specified margins set out in General Clearance Condition 2 is now 80% in the case of properties with a chargeable value exceeding €350,000.00 situated in Dublin City and County, and 50% for all other properties.

For any legal queries on the above, please contact our office on 051 421212 or by email on info@kellycolfer.ie