Dáil Éireann Debate, Tuesday - 18 December 2012
159. Deputy Dominic Hannigan asked the Minister for Finance if any provision will be made with the property tax for executors of wills to be entitled to defer payment until the property is sold; and if he will make a statement on the matter. [56602/12]
View answer164. Deputy Peter Mathews asked the Minister for Finance his plans to allow executors of wills to be included in the list of persons allowed to defer payment of the property tax, where the executor of the will, their spouse are sole or indeed the joint beneficiary of the property concerned; and if he will make a statement on the matter. [56733/12]
View answer194. Deputy Maureen O'Sullivan asked the Minister for Finance if the new Finance (Local Property Tax) Bill 2012 will exempt executors of wills for whom the selling of a property is their responsibility but who are not the beneficiaries of that property, or if the Bill will allow deferring of payment until the property is sold; if the exemption of executors of wills will not be included in the Bill if he will include them in a waiver programme; and if he will make a statement on the matter. [56966/12]
View answerI propose to take Questions Nos. 159, 164 and 194 together.
Under section 11 of the Finance (Local Property Tax) Bill, the personal representative of the estate of a person who was a liable person for Local Property Tax will be the liable person in relation to a relevant residential property. The reason for making a personal representative a liable person is to prevent the avoidance of the payment of local property tax by means of unnecessarily delaying the distribution of the estate and the transfer of a property to the person who would become the liable person in respect of the property. This might happen, for example, where the person who inherits the property is already living in the property and there are no other beneficiaries involved. The tax will be part of the expenses of the estate, along with other regular expenses, including other taxes, where applicable.
A system of voluntary deferral arrangements is in place in relation to Local Property Tax. These are focused on particular categories of householders and will be implemented to address cases where there is a real and substantial inability to pay the LPT. They will be granted under specific conditions, as follows:
- Where the gross income does not exceed €15,000 (single) and €25,000 (couple).
- For income stressed owner-occupiers who have an outstanding mortgage, an adjusted gross income limit will apply – where gross income less 80% of mortgage interest falls below €15,000/€25,000 a deferral option will be available up to the end of 2017 (when mortgage interest relief also ends).
In addition,
- Marginal relief will apply for owner-occupiers where the income or adjusted income is €10,000 above the income limit (€15,000/€25,000) to permit deferrals of up to 50% of LPT liability.
- Interest will be charged on deferred amounts but at a lower rate (i.e. 4% per annum) than the rate charged in default cases (i.e. 8% per annum). The deferred amount, including interest, will be a charge on the property. Deferred property taxes and interest will have to be discharged on the sale/transfer of the property.
Where a surviving spouse, civil partner or cohabitant remains within the income thresholds for a couple, a deferral will be allowed to continue as long as the income requirement is met.
Under section 134 of the Bill, where the spouse, civil partner or cohabitant, as the case may be, of a liable person dies, the liable person may continue to claim a deferral until the first liability date of the next valuation period notwithstanding that he or she does not meet the income limits specified above.
