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. ”