Written answers

Thursday, 20 December 2012

Department of Finance

Property Taxation

Photo of Brendan GriffinBrendan Griffin (Kerry South, Fine Gael)
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To ask the Minister for Finance the way property tax rates proposed in this jurisdiction compare with rates in Northern Ireland; and if he will make a statement on the matter. [57548/12]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Northern Ireland domestic rate is made up of two parts. The regional rate is set by central government and makes up c. 55 per cent of the rates bill; it is used to pay for services such as roads, education and health. From 1 April 2011, the regional rate, expressed in terms of pence per pound, for domestic properties, was 0.3698 pence (in 2010/11 it was 0.3608). The district rate, which is in addition to the regional rate, is fixed annually by individual councils and is their main source of income (over 75% of total income).

The Local Property Tax will have a central national rate of 0.18% on values up to €1 million and 0.25% on the balance over €1 million, but from 2015 local authorities will have the power to vary the rate by 15% above or below the national central rate. I have made a commitment that the central national rate will not change for the lifetime of this Government. The average domestic rates bill in Northern Ireland in 2011 was £789 (c. €964). For LPT purposes, it is estimated that 85% to 90% of properties will be valued at €300,000 or less, and the maximum amount of LPT payable on such properties will be €247 in 2013 (half year charge) and €495 in 2014 (full year charge).


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