Property Tax Exemptions on Homes Adapted for the Disabled

Some people might have got the impression from headlines in the press and on the radio that all homes that have been adapted for people with a disability will be exempt from the property tax . This is not the case  – the full exemption will probably only apply to a small percentage of disabled people.

Update:  May 2014 – Some restrictions on exemptions for disabled people to be liftedsee more here

The changes to the Property Tax regulations  state that the following type of property will be exempt .
A  residential property that is purchased or adapted for use as a sole or main residence by an incapacitated individual
a) where an award has been made by the Personal Injuries Assessment Board or a court
or b) where a trust has been established specifically for the benefit of permanently and totally incapacitated individuals.

In the case of adaptations to a property, the exemption will only apply where the  cost of the adaptations exceeds 25% of the market value of the property before completion of the adaptations. So a house that was worth €200k would need to have adaptations of at least €50k to qualify for the exemption. Anything less than that and the full property tax will be charged.

Reduced Property Tax for disability adaptations.

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In some cases – owners will be allowed to reduce the valuation of their home for property tax purposes where a home has  been adapted for occupation by a disabled person . This will only apply where the adaptation was grant-aided by a local authority.

The reduction in valuation  is limited to  the maximum grant payable  (currently €30,000)  – but  if the adaptation cost less than €30,000 – then this will be the reduction in valuation allowed.
This valuation reduction of up to €30,000 could result in a property tax reduction of as much as €135 a year if it means the property falls into band 01 instead of band 02 . It some cases the reduction  it might not reduce the property tax at all – for example a house valued at €230,000 with  a €20,00o adaptation would be revalued for property tax  at €210,000 but will still remain in the same band  04 for property tax purposes and will still be charged €405 a year.

More about Property Tax and exemptions here

2 thoughts on “Property Tax Exemptions on Homes Adapted for the Disabled

  1. Sir/Madam
    I amseriously disabled due to PPMS and have spent over 30 thousand euros converting my house over the past few years and would like to claim exemptions. Is there a specific form to be filled in or how do I go about claiming
    Stephen Connaughton

    • Stephen there is an exemption but it is only for 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. If this applies to you – you can select this exemption on the LPT1 form.

      Otherwise – as the article states – if the adaptations were grant aided you can reduce the value of the house and this might bring it into a lower valuation band when declaring it on the LPT1 form. There is no special form to fill in.

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