Local Property Tax Update

Local Property Tax Update

28th May 2013 is the deadline to file your property tax return online. You can do this using the Property ID and PIN which was received with the Return as well as your PPSN or tax reference number. You can also file online over the phone using the following number 1890 200 255. 

How to pay

Full payments can be made by the 31^st of July using the following methods:

• Single Debit Authority, which will be deducted on 21^st July 2013 
• Debit/Credit Card online when you file
• Cash payments (including debit/credit card) through approved Payment Service Providers (including An Post; at self service kiosks in various locations and at shops and outlets displaying the logo)

You can also choose to pay in instalments from the 1^st of July. The full amount must be paid by December 31^st 2013. You can do this via a number of methods:

• deduction from salary or occupational pension starting from 1^st July
• deduction from certain payments received from Department of Social Protection
• Direct debit deductions which will commence on 15^th July 2013 and will be deducted on the 15^th of each month thereafter
• Cash payments (including debit/credit card) in equal instalments through approved Payment Service Providers (PPS).

If you have received a Return but you are not the owner of the property, you need to inform the Revenue so they can update the register and do not chase you for the return. You must include the name, address and PPS number of the liable person, why you consider you are not liable or why the property is not a residential property and any supporting documentation. Sent to LPT Branch, P.O. Box 1, Limerick.

Deferral

You can qualify for a full deferral if

• Gross income for the year is unlikely to exceed €15,000 (single/widow/er) or €25,000 for the year (couple) OR
• Gross income for the year is unlikely to exceed adjusted income limit. The adjusted limit increases the above thresholds by 80% of the expected gross mortgage interest payments for the year 2013.

EXAMPLE - If you expect to spend €3,000 on mortgage interest payments in 2013, 3000 * 0.8 = 2400, added to the above thresholds means the adjusted gross income threshold for the year would become €17,400 (single) €27,400 (couple).

If you do qualify for full deferral, you can choose to defer 100% of your liability until the property is sold. Interest of 4% per annum will be charged on the deferred amount.

You can qualify for partial deferral if

• Gross income for the year is unlikely to exceed €25,000 for the year (single/widow/er) or €35,000 (couple)
• Gross income for the year is unlikely to exceed adjusted income limit. The adjusted limit increases the above thresholds by 80% of the expected gross mortgage payments for 2013.

EXAMPLE – using the mortgage interest payments as €3,000 from the above example, 80% of this is €2,400. Added to the above thresholds, the adjusted gross income threshold is €27,400 (single) or €37,400 (couple).

If do qualify for partial deferral, you can choose to partially defer (50%) and just pay the balance.

Other deferral circumstances

 Personal Representatives of a deceased liable person can apply for deferral where a property has not been sold or transferred within three years of the person’s death.

Those who have entered an insolvency arrangement under the Personal Insolvency Act can apply for deferral.

If a sudden and unavoidable significant financial leaves a person unable to pay the LPT without great difficulty, they may apply for deferral. Full disclosure of personal finance is needed in these circumstances.

If a return is not submitted

If a return is not submitted (or if you have not contacted Revenue to say you are not liable), you will be pursued for the estimate of tax which you received. The Revenue are planning to use several collection options including;

• Mandatory deduction from employment income, occupational pension or certain Government payments
• Attachment of your bank account
• Referral of the debt to a sheriff or a solicitor for collection
• Withholding of other tax refunds due as payment against the LPT
• You will not qualify for a Tax Clearance Certificate
• Interest to be charged at 8% per annum and other penalties may also apply
• A property cannot be sold without paying LPT, interest and penalties

of July using the following methods:

Date published 28 May 2013

This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.