Local Property Taxation

Local Property Tax (LPT) came into being in May 2013. LPT is a tax payable on the market value of the residential properties in the State. The deadline for returns was the 28th of May 2013 and returns must be submitted on line.

A half a year charge applies for 2013. From 2014, LPT will apply on a full year basis as was due to be paid by the 1st of January 2014

For further information go to www.revenue.ie 1890 200 255 (ROI only) 00 353 01 7023049 (outside ROI)

If our office can be of any assistance contact John Daly 00 353 (0)64 6641213 or info@seandaly.com

NPPR (Non Principal Private Residence)

The local Government (Charges) Act 2009 introduced a €200 annual charge on non-principal private residences. This would apply to holiday home owners, Investment property owners, 2nd home owners. There was also a late payment fee of €20 per month per property. This also applied to unpaid charges.

As at June 2014, if you were liable for the tax since 2009 and had not paid it, the total liability would be €4,220. However, if the tax was not paid by the end of August 2014 an additional late payment fee of €120 per liability date was applied on 1st September 2014. In addition, the entire NPPR liability was increased by a factor of 50% and then frozen. This would then give a possible total legacy NPPR liability of €7,230 per property. NPPR was discontinued from 2014 onwards, but legacy NPPR liabilities still remains due.

In the event that you own a liable property during the taxable period, but, feel that it should be exempt from the tax (there is a list of possible exemptions listed on the web site www.nppr.ie ). e.g. The house was derelict and unfit for human habitation. Then you should take photos (date the photos) of the property and write letter to the local County Council looking for a letter of NPPR exemption for the property and stating the reason why you feel the property should be exempt. It would be my advice to seek this letter of NPPR exemption now even if you are not thinking of selling the property at this time. There is an administration fee of €30 payable to the local County Council for the exemption letter.

For full details of the charge, liability, payment methods etc. go to www.nppr.ie or contact Kerry County Council revenue department 00 353 (0)66 7162100. If our office can be of any assistance contact John Daly 00 353 (0)64 6641213 or info@seandaly.com

Note: The NPPR is discontinued for 2014. If you have paid your due NPPR / household charge liabilities on your property, then you have no further concerns about these. The only property tax that is now applicable for 2014 onwards is the Local Property Tax (LPT). (See above).

THe Household Charge

The Household Charge is an annual charge introduced by the Local Government (Household Charge) Act 2011 which is payable by owners of residential property. The household charge is an interim measure pending the introduction of a full property tax. (This is a totally separate charge from the NPPR charge) The Household Charge is €100 per residential property situated in the State. The household charge is payable by the owner of the building in respect of each unit of residential accommodaton.

Owners of residential property on the liability date of 1st January 2012, subject to a limited number of exemptions and waivers (see web site www.householdcharge.ie ), were liable to pay the household charge by 31st March 2012. From 1 July 2013, any outstanding Household Charge liability (including late penalties) was increased to €200 and is payable to Revenue. (See web site for details www.householdcharge.ie )

Septic tank registration charge:

All septic tanks were to be registered by the 1st of February 2013. The registration fee was €50. You will be able to register your septic tank with your local authority (County Council) by online registration or by written application.

Information on the charge is on the attached link www.protectourwater.ie. Attached are 3 information leaflets provided by Kerry County Council which provides information on septic tanks and what would be involved in an inspection:

Stamp Duty

When purchasing property, the purchaser will be liable to pay stamp duty tax. There are different rates applicable to residential (houses, apartments 1%) and non-residential (commercial and land 2%). There have been numerous changes to the stamp duty rates in recent years. See attached link: http://www.revenue.ie/en/tax/stamp-duty/residential-rates.html .Information on all forms of taxation is available on the Irish Revenue web site at www.revenue.ie.

Capital Gains Tax

When you sell a property you maybe liable to pay Capital Gains Tax (CGT) if you have made a profit on the sale. The current rate of CGT is 33%. There are a number of exemptions (eg principal residences) and reliefs (eg renovation work). See attached link for further information http://www.revenue.ie/en/tax/cgt/index.html

Capital Acquisition Tax

If you inherit or receive a gift of property you maybe liable to Capital Acquisition Tax (CAT). The current rate of CAT is 33%. There are a number of exemptions and reliefs. See attached link for information http://www.revenue.ie/en/tax/cat/index.html.

If you require further information on taxation please contact John Daly and he will assist you. If he cannot answer your query he will refer you onto an accountant that maybe able to assist you.