Our Local Property Tax, or LPT, was introduced in 2013 and values submitted at that time remain in place until 31st December 2019, following extensions by successive Budgets. It is important to note that while the valuation period runs for another two years, the actual valuation date is 1st May 2013. This means that existing homeowners do not need to update their valuation for 2018. More importantly, while it might seem confusing, it also means that new home owners need to know the valuation of their new home as of 1st May 2013.
For buyers and sellers involved in a transaction this and next month, please note that the liability date for LPT in 2018 is 1st November 2017. To be clear, if you are the owner of a property next Wednesday, the 1st November 2017, you will be obliged to pay the local property tax in 2018.
There is much confusion about LPT and this comes down to regional price differences. Simply put, the tax base rate is 0.18% of the 2013 value of the home or residential property up to €1 million and 0.25% on portion in excess of €1 million. Each individual local authority nationwide may decide (by vote) to increase or decrease this rate by a variance of 15%. For 2018, Wicklow County Council has opted not to vary the rate, leaving it at 0.18%. Meanwhile, Wexford County Council has elected to increase the LPT rate by 10% – this is double last year’s rate, which was 5% in excess of the base rate.
LPT returns are self-assessed but if you knowingly or recklessly undervalue your home in order to keep your tax bill low, you could be hit with a penalty of up to €3,000. The penalty is set at the amount of the property tax bill of the corrected valuation. In addition to this penalty, you will have to pay back the tax underpaid together with 8% interest per year on the amount of underpaid tax. It is important to understand that reliance on the Revenue Commissioners’ own online guide to value your home is no defence as this is intended to be a guide only. Valuations submitted back in 2013 are no longer valid and a new valuation will be necessary in time for 2018 LPT return.
For readers outside the Wicklow and Wexford areas, The Irish Times, last month, published a full list of changes to LPT by each local authority and the information can be accesses as follows:
If you are considering selling in the South Wicklow and North Wexford areas, call into one of our offices (located in Carnew and Gorey) and chat to any of our expert team or you can contact us online at kinsellaestates.ie. We are happy to facilitate overseas buyers and sellers via Skype or similar, outside of regular office hours.
Alternatively, email me directly on email@example.com or telephone : +353 53 94 21718
Market Updates on Friday, October 27, 2017 in News