The new LPT – Local Property Tax will be collected from July 2013 . Full details of Local Property Tax Amounts Here.
The exemptions for the new Property Tax are very similar to those for the Household Charge – with a couple of extra ones to compensate home buyers for some of the the loss of mortgage tax relief
All owners of residential property will be 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)
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.(See end of page for self build houses)
Exemption Type B.
Properties purchased by a first time buyer between 1 January 2013 and 31 December 2013 are exempt until the end of 2016 if a) the buyer would have been eligible for mortgage interest relief prior to Jan 2013 and b) the home is used as the person’s sole or main residence.
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 list is not the same properties as in 2012)
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.
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)
Note about Self Build properties – Re: Category A Exemption
If the house is completed before 1 May 2013, the property will be subject to LPT, unless the person who self-builds the property is eligible for first time buyer exemption (Category B) .
Any residential property built (complete) by its owner after 1 May 2013 and before 1 November 2016, will not be liable for LPT until 2017.
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