Written answers

Tuesday, 2 November 2021

Photo of Michael CreedMichael Creed (Cork North West, Fine Gael)
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255. To ask the Minister for Finance the categories of income or property that are exempt from liability for the local property tax; and if he will make a statement on the matter. [52105/21]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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The Finance (Local Property Tax) Act 2012 (as amended) provides for certain properties to be exempt from LPT during the current valuation period (2013 to 2021) and the next valuation period (2022 to 2025) where they meet certain qualifying conditions. The full list of exemptions that apply for the new valuation period and how they can be claimed is available on the Revenue website.

It is important to note that certain exemptions that are available for the current valuation period will expire on 31 December 2021 and will not be available for the new valuation period. These include properties purchased as a home during 2013, properties in unfinished housing estates, unsold properties held by builders or developers and new or unused properties purchased from a builder or developer. The current exemption in respect of pyrite damaged properties is being phased out and will not apply after 21 July 2023. However, any properties that qualify for the exemption up to that date will benefit for the full six-year period from the next valuation date (i.e. from the following 1 November). The legislation also provides for an exemption from LPT for a period of six years for property owners who are eligible for the Defective Concrete Blocks Grant Scheme.

While the legislation does not provide for an exemption from LPT based on income levels, the option to defer liabilities remains in place where certain conditions are met. A deferral differs from an exemption in that the LPT liability remains as a charge against the property that must be paid before any sale or transfer of ownership can happen. The qualifying income thresholds for deferrals for the new valuation period are increased to €18,000 (from €15,000) for a single owner and €30,000 for a couple (from €25,000) while the applicable interest rate has been reduced from 4% per annum to 3% per annum from 1 January 2022. Further details on deferrals of LPT are available on the Revenue website.

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