Interested in claiming an exemption from Local Property Tax up to 2016?
Did you buy a residential property in 2013? You may be exempt from Local Property Tax up to 2016. The exemption originally only applied to first time buyers but due to an error in drafting of the legislation anybody who purchases a property in the period 01 January 2013 to 31 December 2013 can claim this exemption if they qualify under all of the conditions.
What if you paid the tax already?
Refunds are available and the Revenue will be contacting those concerned as soon as possible.
When must the property be purchased?
The property must be purchased between 01 January and 31 December 2013. If the property is purchased after the 01 May 2013 a liability will already exist for 2013 so it may happen that the exemption only applies for the years 2014 -2016.
Sole or main residence
The person who purchases the property must occupy it as their sole or main residence before the exemption is claimed and continue in occupation to avoid the termination of the exemption.
When is the exemption terminated?
The property ceases to be exempt when it is sold or otherwise transferred such as by way of gift or inheritance or when it ceases to be used as a sole or main residence.
Example
Mary completes the sale of a house to John on 03 May 2013. Mary is liable for LPT for the year 2013. John qualifies for an exemption in respect of LPT for the years 2014-2016. John will not have to pay the LPT for any of the exempt years unless he forms the view that the chargeable value that was declared by Mary was not reasonable. Where this happens he should submit a return to the Revenue with a revised chargeable value and claim the exemption on this return.
Niall Colgan is a Cork based Solicitor with over 10 years experience in private practice.
Tags: property tax
