By Siobhan Healy
THE Revenue Commissioners have recently published the statistics on Local Property Tax (LPT) for the first quarter of 2023 and the compliance rate of 90% shows that the vast majority of property owners have met their payment obligations.
The report detail shows LPT collection of €314m so far for the current year.
There was a new LPT regime introduced in 2022 (based on a valuation as at 1st November 2021).
Properties were valued by their owners under self-assessment into one of 20 different valuation bands.
For properties previously returned in 2022, the same valuation applies for 2023 but payment arrangements were required to be put in place if they hadn’t been rolled over.
The following properties may be exempt from LPT: properties with significant levels of pyrite damage; properties built with defective concrete blocks; properties owned/used by charitable bodies; registered nursing homes; properties vacated due to owner’s illness and properties purchased/built/adapted by an incapacitated individual.
It is to be noted, however, that even if your property is exempt from LPT, it is necessary to make a return, in order to claim the exemption.
2022 was the first year that newly liable properties came within the charge to LPT on an annual basis.
Owners of properties built during 2022 were required to submit an LPT return and set up a payment arrangement for 2023. While the level of compliance is high, some property owners haven’t yet paid or set up a payment arrangements for 2023.
Letters have been issued to such property owners who, if they continue to default on their obligations, may be subject to collection and enforcement measures by Revenue, including mandatory deduction at source from salary or pension, withholding of tax clearance certification, the application of surcharges on income tax, corporation tax and capital gains tax returns or offsetting of other tax refunds against LPT arrears.
The Revenue, in last week’s statement, urged all property owners who haven’t made arrangements to pay their LPT, to take immediate action and use this opportunity to ensure they are fully compliant with their LPT obligations.
• Siobhan Healy is a tax consultant with FDC Bandon.