Written answers

Tuesday, 28 September 2021

Photo of Cathal CroweCathal Crowe (Clare, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

274. To ask the Minister for Finance if he will defer the local property tax for properties built and purchased since 2013 for a period of 12 months in view of the economic hardship faced by homeowners due to Covid-19. [46740/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Programme for Government - “Our Shared Future” – includes a commitment to bring forward legislation in relation to the Local Property Tax (LPT) on the basis of fairness and that most homeowners will face no increase in their LPT liability. In addition there is a commitment to bring new homes, which were outside the LPT, into the taxation system.

The Finance (Local Property Tax) (Amendment) Act 2021 fulfils the Programme for Government commitments in this area and secures the future of the Local Property Tax (LPT). The 2021 Act provides inter alia that residential properties built since 2013 will be liable for LPT for 2022 onwards. I have no plans to alter this position. The vast majority of residential property owners have been paying LPT since 2013 and their situation vis-à-vis property owners who have remained outside the scope of LPT has become highly inequitable and untenable. I am very concerned that this inequity does not continue into 2022 when property owners at 1 May 2013 are due to pay LPT based on their new value as at 1 November 2021. Deferring LPT as suggested in the deputy’s question would have the effect of continuing this inequitable situation and I do not see any basis for doing so.

Any residential property owners experiencing financial difficulties can avail of a wide range of flexible payment options in respect of LPT. The full range of payment options, which includes phased arrangements, are available to property owners via the LPT portal on the Revenue website. Residential property owners can make direct contact with Revenue at telephone number (01) 7383626 or by writing to LPT Branch, PO Box 1, Limerick, where every effort will be made to agree a suitable payment arrangement.

Revenue has engaged extensively with residential property owners who are experiencing financial difficulties since the pandemic began to agree flexible LPT payment arrangements that best suit their circumstances and avoid unnecessary hardship, and it has assured me that this will continue to be the case.

The LPT legislation provides for the possibility of deferring the charge to LPT in certain circumstances to assist individuals who may have difficulty paying the tax. The deferred tax remains as a charge on the property and must be paid before a sale or transfer can be completed. Interest is charged on the deferred amount. The Finance (Local Property Tax) (Amendment) Act 2021 provides that for 2022 the deferral income thresholds will be increased to €18,000 for a single owner and €30,000 for a couple. In addition, the rate of interest charged on deferred LPT liabilities will be reduced from 4 per cent to 3 per cent annually.

Comments

No comments

Log in or join to post a public comment.