Shared Ownership and the Property Tax

Property tax and  shared ownership properties – who is liable ?

Where a property is owned by more than one person, joint owners are to be jointly and severally liable for the payment of the tax. This means that Revenue can pursue one person for the full liability and payment by that person discharges the tax liability of all joint owners. For the purposes of completing a local property tax return, joint owners are required to agree a valuation for the property. A single return should be submitted by one person on behalf of the joint owners. If the local property tax is not paid, the Revenue Commissioners can proceed to collect the tax from any of the owners.

In the case of  Local Authority shared ownership schemes,

The Minister for Finance (Deputy Michael Noonan):  announced in the Dail on 5th March 2013   that he had been  advised by the Revenue Commissioners that residential properties purchased under the various local authority shared ownership schemes will  be subject to LPT, and in these cases, the individual(s) who purchased the residential property from the local authority will be liable to pay the tax.

He expanded on this reply by saying ”  This is on the basis that under these schemes, the purchaser acquires a leasehold interest in the property for a period that exceeds 20 years. Such a purchaser is in the same position as a property owner who purchases a residential property with a mortgage from a financial institution. Accordingly, there is no reason why such an individual should not be liable for payment of the LPT on the property.

3 thoughts on “Shared Ownership and the Property Tax

  1. Purchased my home through shared ownership scheme which means I currently rent half my home and pay mortgage on the other half from CCC. When I made enquiries to buy them out and get a regular mortgage I was told this was not possible so therefore feel I should only pay LPT on the half of the property I’m paying mortgage on?

    • Hi Lorraine – what you say does make some sense – but Minister Hogan has stated in the Dail , and the Revenue have also said – that shared ownership occupants have to pay the full amount.

  2. I also purchased my home under the shared ownership scheme and i feel it is very unfair to charge people under this scheme the full amount of property tax when they only own half. Trust this country to come up with this ridiculous and unjust tax. Most houses purchased through this scheme are meant to affordable housing. Where does “affordable” come into to this. Paying tax for half of something you don’t even fully own. And it’s very convenient for the DCC to say we should pay it because we own half. Yes we own HALF so you pay the other half.

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