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Know Your Rights has been compiled by Citizens Information Kerry which provides a free and confidential service to the public…
If you are the owner of a residential property on 1 November 2021, you have to pay Local Property Tax (LPT). The tax is based on the value of your property on 1 November 2021.
You must assess the value of your property and make a tax return for LPT by 7 November 2021. The following are some common queries which the Citizens Information Service has received in relation to the Local Property Tax:
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Q. Who must pay LPT?
A. If you own residential property on 1 November, including rental property, you must pay LPT. This is called the liability date. For 2022 LPT, the liability date is 1 November 2021.
If there is more than one owner you need to agree who will pay the tax, otherwise Revenue can collect it from any of the owners.
In some cases, you must pay the LPT if you are not the owner:
• If you are a tenant with a long-term lease of more than 20 years or
• If you have a right to live in the property for life or for more than 20years or a right to live there ‘to the exclusion of others’
The landlord pays LPT if a property is rented on a normal short-term lease (less than 20 years).
Q. How do I value my property?
A. LPT is a self-assessment tax. This means that you calculate the tax you have to pay based on your own assessment of the market value of your property.
Revenue does not value properties for LPT but it provides an online valuation tool and guidance on how you can value your property yourself. The on-line tool will give you the average values for property in your area.
You need to take into account the specific features of your property compared to others to decide whether it is within the average valuation band given for your area. For example, your property could be smaller or bigger than the average in your area.
You should use information about properties that are similar to yours, for example, properties that are a similar type, age and size.
You can choose to ask a professional valuer to value your property or get information from local estate agents.
You can also use the residential property price register to check the price of properties, comparable to yours, that have been sold in your area in recent years.
You should keep a copy of any information sources that you use and any other supporting documentation. Revenue may request this from you if it reviews your assessment.
Q. My property was adapted to make it more disability accessible, does this effect the valuation for LPT?
A. If your property has been adapted to make it more suitable for a person with disability, you may be eligible to reduce the property valuation.
If you are eligible for this relief, you can reduce your valuation by €87,500, which is the width of most of the LPT valuation bands. This will move your valuation into a lower valuation band and reduce your LPT Charge.
Q. My property was built in 2014 and I was not liable for LPT up until now. Has this changed?
A. Revenue have announced changes to the exemptions that will apply for LPT due in 2022. Your property may not have been liable for LPT for the previous valuation period from 2013 to 2021 e.g. if your house was built after 2013.
However, your property becomes liable for LPT for the next valuation period from 2022 to 2025, as long as it is a residential property on 1 November 2021.
Q. Can I defer paying my LPT?
You can defer (or partially defer) payment of your Local Property Tax (LPT) if you meet certain conditions.
If you meet the deferral criteria you can choose to defer the full LPT until your financial circumstances improve or the property is sold. However, this does not mean that you are exempt from the LPT.
Interest is charged on the deferred amount and the deferred amount remains a charge on the property.
There are partial deferral arrangements. If you meet the partial deferral criteria you can choose to defer 50% of your LPT liability and pay the balance. Interest is charged on the deferred amount and it remains a charge on the property.
Q. How do I pay the LPT?
Revenue offers a range of ways to pay your Local Property Tax (LPT). You can see these on revenue.ie You can choose to make one single payment or you can pay the tax in equal instalments over the year. You must confirm your payment option for 2022 by 7 November 2021.
Q. My house is currently on the market and I hope to have it sold by the end of the year. Am I liable for the LPT in 2022?
If you are the owner of a residential property that is liable for LPT on 1 November 2021 then it is your responsibility to pay LPT in 2022.
If you sell your residential property after 1 November 2021 you will be liable to pay LPT on the property for 2022, even if it is sold before the 31st December 2021
• For anyone needing information, advice or have an advocacy issue, you can call a member of the local Citizens Information team in Kerry on 0761 07 7860, they will be happy to assist and make an appointment if necessary.
The offices are staffed from Monday to Friday from 10am to 4pm. Alternatively you can email on tralee@citinfo.ie or log on to www.citizensinformation.ie for further information.
