The valuation date for all residential property for Local Property Tax (LPT) purposes was Monday, 1 November 2021 with the obligation on property owners to self-assess the value of their property and file a return by 7 November 2021. In order to file a Return, owners need to value their property, confirm the details of the property and ownership and indicate how they wish to pay the 2022 Charge.
The value that property owners place on their property will determine the amount of LPT payable for 2022, and for the three years from 2023 to 2025.
Some properties which have previously been exempt from LPT Charges to date – such as new homes or those in ‘ghost estates’ – will become subject to the charge from 2022.
A small number of exemptions still remain, to include the following:
- property owned by persons who are not able to live in the property due to long term incapacity or infirmity;
- properties purchased, adapted or built for incapacitated persons; and
- properties damaged by pyrite (maximum of 6 year relief) or defective concrete blocks (such as MICA issues).
Valuation Bands have been revised since 2013 and Revenue have placed a guide valuation on each property which will need to be reviewed. Whilst most people will likely be guided by the options set out on Revenue’s property valuation guide at www.revenue.ie, where owners will be asked to enter the Eircode of their property. The interactive map, will then offer a price band for that address. There are other options open to owners arriving at a valuation of their property to include:-
- The Residential Property Price Register https://propertypriceregister.ie/;
- A professional valuation; or
- Information from local Estate Agents or property sales websites such as daft.ie , www.myhome.ie and https://geowox.com/
Whilst Revenue has not, to date, undertaken significant reviews of the self-assessment values placed on properties by their owners, it is anticipated this may change in the near future. If an owner wishes to dispute the valuation placed by Revenue on a particular property, the Land Values Reference Committee will be the authority who will now decide the issue.
Owners may choose to pay the LPT due in one annual payment (deducted on 21 March 2022) or in instalments. Payment options include direct debit, credit card or deduction at source. Cash payments can be made through An Post or by forwarding a cheque to the LPT Branch in Limerick. If an individual is eligible to defer payment, and wishes to do so, an interest rate of 3% will apply.
Property owners will need to be aware that if they choose not to submit a new Return, Revenue will collect an amount based on their estimated value of the property. However, the obligation on property owners to submit a Return remains and should an individual choose not to file a return or pay the tax due, they may have difficulty obtaining a tax clearance certificate or be subject to a fine up to €1,000.
If you have any queries on the above, please contact Niamh O’Connor (firstname.lastname@example.org or 021-7300200) of JW O’Donovan LLP, 53 South Mall, Cork.