Dominic Hannigan (Meath East, Labour)
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To ask the Minister for Finance if a married couple live together but the house is only in one of their names will the named homeowner's income be the only one taken into account for the payment of the tax or will the other person's income also be taken into account; and if he will make a statement on the matter. [6650/13]

Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that where a liable person is one of a married couple living together where the property on which Local Property Tax (LPT) is chargeable is in one name, the tax can be paid from either spouse’s income using the various payment options available. This includes payment by way of deduction at source from employment or occupational pension income. The liability to LPT is not affected by the income of the couple. However, the couple’s gross income is taken into account in establishing whether they qualify for full or partial deferral of the tax, regardless of whether the property is in the name of one member of the couple or in joint names. Therefore, where the residential property is the sole or main residence of the couple and their joint estimated gross income from all sources does not exceed €25,000 during the relevant year, they will be eligible to apply for full deferral of the LPT charge. Gross income from all sources in this context consists of both spouse’s total income before any deductions, allowances or reliefs that may be taken off for income tax purposes and includes income that is exempt from income tax and income from the Department of Social Protection but excludes Child Benefit. To determine whether deferral applies for 2013, the couple is required to estimate on 1 May 2013 what their total gross income for 2013 will be.

The couple will qualify for deferral of 50% of the LPT liability where both spouse’s estimated gross income from all sources is less than €35,000 for the year. The balance of 50% of the tax must be paid. Where the property was purchased with a mortgage, the thresholds of €25,000 and €35,000 are increased by 80% of the gross mortgage interest payments.

The deferral thresholds of €25,000 and €35,000 apply to civil partners and cohabitants as well as to married couples.