Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance if he will confirm the details that must be supplied to the Revenue under Section 6 of the Finance (Local Property Tax) (Amendment) Bill 2013 in order for a person to avail of the reduction in the valuation of the property arising from an adaptation of the property to enable its use by disabled persons; if he will confirm if the full medical file is required by the Revenue; and if he will make a statement on the matter. [16212/13]

Michael Noonan (Limerick City, Fine Gael)
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The enactment of the Finance (Local Property Tax) (Amendment) Act 2013 on 13 March introduced a number of amendments to the original Act, which includes relief for properties adapted for use by disabled persons. I would like to clarify that this relief only applies where the adaptation work increases the market value of the property. Section 15A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided or approved for grant aid, by a local authority. The person with the disability must occupy the property as his or her sole or main residence after the adaptation is completed. The reduction in value is limited to the lesser of the chargeable value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme. The relief ends on the sale or transfer of a property that has been adapted, unless the person with the disability continues to reside in the property.

I am advised by the Revenue Commissioners that where adaptation work has increased the chargeable value of a property, as LPT is a self-assessed tax, the liable person him or herself determines the reduction in the chargeable value of the property and calculate the revised chargeable value and decides which value band is relevant to the property. In common with all other liable persons, he or she should then include the appropriate valuation band on their LPT Return, select a payment preference, and submit the return to Revenue, online or in paper.

I am advised by Revenue that because LPT is a self assessed tax, the liable person does not need to submit any supporting documentation to Revenue when filing their LPT Return. All relevant supporting documentation to support the reduction in the property’s chargeable value should, however, be retained by the liable person in the event that Revenue decides to check the validity of the claim at a later stage as part of its normal compliance programme.

In that regard, I am further advised that supporting documentation would not include medical details of the disabled person but would include, for example, evidence of:

- Receipt of local authority grant or approval for grant

- Scheme under which grant received

- Carrying out of adaptation work

- Details of work carried out

- Cost of adaptation work.

Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance if, in relation to the definition of the chargeable value of a property in the Finance (Local Property Tax) Act 2012, in arriving at a valuation, any consideration can be given to an encumbrance on the property, for example. if a person other than the property owner has a legal right of residence for the remainder of their life; and if he will make a statement on the matter. [16213/13]

Michael Noonan (Limerick City, Fine Gael)
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The Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and how a residential property is to be valued for Local Property Tax (LPT) purposes. I am informed by the Revenue Commissioners that LPT is a self-assessed tax so in the first instance it is a matter for the property owner to calculate the tax due based on his or her assessment of the chargeable value of the property. The chargeable value is defined in the 2012 Act and means the price that the unencumbered fee simple of a residential property might be expected to fetch on a sale on the open market were that property to be sold on the valuation date of 1 May 2013, in a manner that would secure the best possible price for the property. Therefore, in assessing the market value of a residential property no account may be taken of any encumbrance on the property.

The 2012 Act also provides that a liability for LPT will arise where a person owns a residential property on the liability date which will be 1 May 2013 for the year 2013 and for subsequent years, 1 November in the preceding year. I would like to clarify that where an individual has a long-term right of residence (for life or for 20 years or more) that entitles him or her to exclude any other person from the property, he or she would be considered to be the liable person in respect of the property. Consequently, in the example you have provided, it would appear that the person with the right of residence for the remainder of his or her life may be the liable person for the residential property in question.