Local Property Tax: are you liable to pay?

Local property tax: are you liable to pay?

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Xeinadin Group

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More than 800,000 homeowners in Ireland have received letters from the government this month reminding them that they are liable to pay Local Property Tax (LPT).

If you’re one of them, here’s what you need to know about LPT, and what you need to do to arrange payment.

How does Local Property Tax work?

LPT is a tax on residential property. For the purposes of the tax, a residential property is defined as any building currently used as a dwelling, or one that is suitable for use as a dwelling even if it is unoccupied. Properties are exempt from LPT if they are both unoccupied AND unsuitable for habitation, for example due to disrepair.

(A property is still liable if it is inhabited regardless of the state of disrepair it might be in).

The amount of tax owed is based on the valuation of the property. The current valuation period runs from November 2021 to November 2025. Valuation is self-assessed, and submitted via an LPT return. If you have not yet submitted an LPT return, you are required to make a valuation of your property as of November 2021. You won’t have to do so again until 2025.

Liability to pay LPT carries over from the previous year. So the reminder letters sent out on 1st November this year were based on the status of the property on 1st November 2022. If you bought a home between November 2021 and November 2022, or a property you own was renovated to become habitable again during that period, you may have received notification of liability for the first time.

You need to submit an LPT return containing your property valuation by 1st December. Revenue offers an interactive online valuation tool to assist with this.

How do I pay LPT?

There are a range of options for paying your LPT, each with their own deadlines:

  • 10th January 2024 – deadline for paying in full by cash, cheque, credit or debit card
  • 15th January 2024 – Monthly direct debits start, and continue on the 15th of each month.
  • January 2024 – Other phased payments start, including deduction at source and phased cash payments via an authorised payment service provider.
  • 21 March 2024 – Deduction date for Annual Debit Instruction (ADI).

You must inform Revenue of your chosen payment method by 1st December. Confirmation and arrangements to pay can be made online via the LPT Portal

What if I don’t believe I am liable for LPT?

You are liable for LPT if you are the owner or joint owner of any property that meets the definition of being a residential dwelling in the current liability period. That applies to private owners as well as commercial owners such as landlords and housing associations. You are also liable for LPT if you have a leasehold on a property of over 20 years.

If you believe there has been a mistake in identifying you as the owner of a property classified as liable for LPT, or in the classification of the property as liable, please contact Xeinadin Group to talk to our tax team.

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