The Local Property Tax will be charged to all residential property owners – tenants will not be liable. This is the same as the Household Charge.
Each dwelling is liable for property tax – but Revenue have stated that …
“Where a building contains units that are not suitable for use as dwellings in their own right, such as a bedsit, the building as a whole should be valued for LPT purposes and one LPT Return should be filed.
Where an individual residential property within a building is suitable for use as a dwelling in its own right, (e.g. a self-contained dwelling such as an apartment) it should be valued as a single residential property for LPT purposes.”
Some good news for landlords is that it appears that the Property Tax is eventually going to be deductable from rental income when calculating profit for income tax purposes.
The NPPR and the Household Charge were not allowed as expenses when landlords were working out their profit – but according to Michael Noonan (Minister for Finance) – the Property Tax will be treated differently.
He said in the Dail on 16th January 2013 that …
“The Thornhill Group recommended that the Local Property Tax paid in respect of a rented property should be deductible for income tax or corporation tax purposes, in a similar manner to commercial rates. This is not provided for in the Finance (Local Property Tax) Act 2012 but it is the intention of the Government to introduce such a provision on a phased basis.“
Landlords need to also note that:
Revenue have stated that people who own more than one property will have to file their property tax returns online and pay online.
This will apply to non landlords too – ie people with holiday homes etc.
Also -If you are already required to submit tax returns and pay electronically to Revenue you will have to pay and file for LPT online.
Any company that owns residential properties will have to pay and file for LPT online .