Written answers
Thursday, 25 April 2013
Department of Finance
Property Taxation Administration
Willie Penrose (Longford-Westmeath, Labour)
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69. To ask the Minister for Finance if he will outline the referral arrangements that are in place for persons who have less than €25,000 per year in income, mainly comprised of invalidity/disability payments and who wish to defer the payment of the local property tax; and if he will make a statement on the matter. [19691/13]
Michael Noonan (Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that for individuals on low incomes or those whose only income source is from the Department of Social Protection, the Finance (Local Property Tax) Act 2012 (as amended) provides for a system of deferral arrangements for owner-occupiers where there is an inability to pay the tax and certain specified conditions are met. A person who qualifies for full deferral can opt to defer 100% of the LPT liability. A person who qualifies for part deferral can opt to defer 50% of the liability and must pay the balance of LPT.
Deferral based on income threshold is available as follows:
| Condition Number | Condition | |
|---|---|---|
| Full Deferral | 1 | Gross income for the year is unlikely to exceed €15,000 (single or widow/er) and €25,000 (couple) |
| Full Deferral | 2 | Gross income for the year is unlikely to exceed the adjusted income limit. This adjusted income limit is calculated by increasing the thresholds of €15,000 (single or widow/er) and €25,000 (couple) by 80% of the expected mortgage interest payments for the year 2013. This applies until 31 December 2017. |
| Partial Deferral | 3 | Gross income for the year is unlikely to exceed €25,000 (single or widow/er) and €35,000 (couple). |
| Partial Deferral | 4 | Gross income for the year is unlikely to exceed the adjusted income limit. This adjusted income limit is calculated by increasing the thresholds of €25,000 (single or widow/er) and €35,000 (couple) by 80% of the expected mortgage interest payments for the year 2013. This applies until 31 December 2017. |
To determine whether they qualify for deferral for 2013, liable persons are required to estimate on 1 May 2013 what their total gross income for 2013 is likely to be. Gross income from all sources consists of the total income before any deductions, allowances or reliefs that may be taken into account for income tax purposes and includes income that is exempt from income tax and income received from the Department of Social Protection but excludes Child Benefit. Where a deferral is being claimed on this basis, the LPT1 Return must be completed and the relevant deferral selected.
Interest will be charged on LPT amounts deferred at a rate of 4% per annum. The deferred amount, including interest, will attach to the property and will have to be paid before the property is sold or transferred. I am advised by the Commissioners that full details of all deferral options are outlined in the Guidelines on Deferral or Part Deferral of Local Property Tax, which are available on Revenue’s website www.revenue.ie.
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