Local Property Tax Changes

Local Property Tax Changes
By Eimear Larrissey, Tax Analyst, Contracting PLUS

For the first time since 2013, changes were made to the Local Property Tax (LPT) system.  By now, most homeowners will have received a letter from Revenue advising what to do for 2022.

In short, if you are a residential homeowner on 1 November 2021, then you are liable to pay LPT for 2022 for that property, even if it is not your main place of residence.

Certain properties previously excluded or exempt from LPT, such as new houses bought after 2013, will now be liable to LPT.

If you are already paying LPT, the annual amount may not necessarily be different.  This is because the changes incorporate the sharp rise in house prices in recent years.

So, to meet your LPT obligations for 2022, have your letter handy (as it has your property ID and Pin) and your PPSN.

Then follow these three simple steps:

  • Determine the market value of property, or properties if more than one, on 1 November 2021
  • Submit your LPT return along with the valuation by 7 November 2021 through your Revenue account
  • Choose your preferred option for payment

When valuing your property, a professional valuation is not required.  Revenue will accept valuations from relevant sources e.g., newspapers, the property price register or local estate agents.  It is a self-assessment process, but Revenue do provide an LPT valuation guide here.  Simply enter your Eircode and the price band for your location will be shown.  Your valuation will apply for the years up to and including 2025.

LPT does not feature on your personal tax return but be careful as noncompliance with your LPT can lead to surcharge being applied to your Income and Gains Tax.

 

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