Local Property Tax Exemptions

The new LPT – Local Property Tax began in July 2013 .  Full details of Local Property Tax Amounts Here.

All owners of residential property are liable (Not Tenants) .
A residential property is defined as any building that is in use or is suitable for use as a dwelling.(Mobile homes , vehicles and boats are excluded)

Exemptions

These are the types of property that are exempt from the Local Property Tax.  (there are no further exemptions or waivers  relating to personal circumstances.)

Exemption Type A.
New and unused properties purchased from a builder or developer between 1 January 2013 and 31 October 2016 are exempt until the end of 2016.  (Where a receiver or a liquidator has taken control of properties owned by a builder or developer, Revenue takes the view that those properties continue to be exempt . Therefore, where a person purchases a new and unused property from such a receiver or liquidator, this exemption also applies.)

Exemption Type B.
Update: Nov 2013 (Due to legislation error)  Properties purchased by a first time buyer anyone between 1 January 2013 and 31 December 2013 are exempt until the end of 2016 if  the home is used as the person’s sole or main residence. This should also include self built homes.

Exemption Type C. Properties constructed and owned by a builder or developer that form part of their trading stock ,  remain unsold and that have not yet been used as a residence.

Exemption Type D. Properties in unfinished housing estates (as specified by the Minister for the Environment, Community and Local Government.
The 2013 lists of unfinished estates can be found here

Exemption Type E.
A  temporary exemption will be granted for at  least 3 years for residential properties that have been affected by a significant level of pyrite-induced damage. ( regulations to follow to determine how it will be established if  a property has been affected by a significant level of pyrite-induced damage.)

Exemption Type F. Residential properties owned by a charity or a public body and used to provide accommodation and support to people who have a particular need in addition to a general housing need to enable them to live in the community e.g. sheltered housing for the elderly and the disabled.

Exemption Type G. Registered Nursing Homes.

Exemption Type H. A property that was previously occupied by a person as their sole or main residence that has been vacated by the person for 12 months or more due to long term mental or physical infirmity. A property may also be exempt if the vacated period is less than 12 months and the person’s doctor is satisfied that he or she is unlikely to return to the property. In both cases, the exemption only applies when the property is not occupied by any other person. (This extra rule on the house being empty did not apply for the Household Charge)

Exemption Type I. Mobile homes, vehicles or vessels.

Exemption Type J. Properties fully subject to commercial rates.

Exemption Type K. Diplomatic properties

Exemption Type L  A house  that is purchased or adapted for use as a sole or main residence by a ” permanently and totally incapacitated” person. This exemption will only apply where an award has been made by the Injuries Assessment Board or a court or where a trust has been established specifically for the benefit of the individual.  In the case of adaptations to a property, the exemption will not apply unless the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. Read more here about Property Tax Reductions for Disabled

Exemption Type M. Residential properties used by a charitable body for recreational activities connected with its charitable purpose are exempt. (I.e. Scout/Guide accommodation)

Claiming an Exemption in 2014

If you  did not meet the conditions to claim an exemption in 2013 – but  now qualify for an exemption. How do you claim an exemption for 2014?

There is no special form to fill in or no online form either – which is not very convenient.  Revenue say that people have to  apply for an exemption by writing to the Revenue Commissioners, LPT Branch, P.O. Box 1, Limerick or by emailing  lpt@revenue.ie . They also say that this was supposed to be done by the  7th  November 2013!   Along with the exemption category you are claiming you need to  provide your name, Property ID, Property address and your PPSN or tax reference number.

Properties owned by Local Authorities or Social Housing providers  will not be exempt unless it is provided to people with special housing needs such as the elderly or people with disabilities. Liability will rest with the local authority or social housing organisation as owner.  All local authority homes will be automatically placed in the lowest valuation band  and pay €90 a year.

Shared Ownership : Houses bought under a shared ownership with the local authority were deemed not to be  liable for the household charge because local authority homes were exempt.  But they will not be exempt from the Local Property Tax. It has been stated in the Dail that purchasers are liable. See  here 

In other joint  ownership situations, the owners are held jointly and severally liable. This means that Revenue will pursue payment of the property tax against both parties as if they were jointly liable and it becomes the responsibility of the owners  to sort out their respective proportions of liability and payment. Only one party can complete the Property Tax return as the liable person.

There is the option to Defer payment of the Property Tax for people on low incomes. More About Property Tax Deferrals Here

113 thoughts on “Local Property Tax Exemptions

  1. Hi Moneyguide

    I am in a similar position to Louise’s post from March 25th.
    Currently doing a self build which started in 2012 so we were able to claim TRS but is not due to be complete until July this year. The only difference really is that our build is been done by a building contractor. We’ve also had to drawdown our mortgage in phases.
    Have you anymore info or advice on how we prove the house won’t be complete on May 1st apart from taking photos? Should we ask our Solicitor for advice? Also we are required to get a final valuation cert done when the house is complete so when this carried out do you reckon that would be enough proof to satisfy Revenue?

  2. Exactly what proof Revenue will accept is not known.
    Photos – how would you prove when they were taken?
    A completion/valuation cert by an engineer might be acceptable –
    Probably best to try and get an answer off Revenue .

    You might not get a tax return for the LPT – so if that happens there is the option to do nothing . The issue might not arise until 2016 when fresh valuations are required – they might at that stage ask about the tax for 2013/15/16.

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