I am informed by the Revenue Commissioners that it is not possible to give a definitive reply based on the information supplied by the Deputy. However, by way of general information, the Finance (Local Property Tax) Act 2012 provides for a number of specific exemptions from the Local Property Tax (LPT) as well as the possibility of deferring the charge in certain cases of inability to pay. Under Section 5 of the Act an exemption may be obtained where a property that was previously occupied by a person as his or her sole or main residence has been vacated by the person for 12 months or more due to long term mental or physical infirmity. An exemption may also apply where the period is less than 12 months, if a doctor is satisfied that the person is unlikely at any stage to return to the property. In both cases, the exemption only applies where the property is not occupied by any other person.
I am also informed by the Revenue Commissioners that where a residential property is the sole or main residence of a liable person who has estimated gross income from all sources of less than €15,000 for a single person or €25,000 for a couple, the liable person(s) will be eligible to apply for full deferral of the LPT charge. To determine whether deferral applies for 2013, liable persons are required to estimate on 1 May 2013 what their total gross income for 2013 is likely to be. Gross income from all sources means income before any deductions, allowances or reliefs that may be taken into account for income tax purposes and includes income that is exempt from income tax and income received from the Department of Social Protection.
In addition, owner-occupiers will qualify for deferral of 50% of the LPT liability where their estimated gross income from all sources is less than €25,000 if they are single and €35,000 for a couple. The balance of 50% of the tax must be paid.
The Finance (Local Property Tax) Act 2012 also contains a number of specific deferral provisions that cater for cases of low income and significant mortgage burden.
I appreciate that there will be some property owners who may find themselves unable to pay LPT but who do not qualify for a deferral under the existing provisions. For this reason, I have brought forward enabling legislation in the Finance (Local Property Tax)(Amendment) Bill 2013, which was published yesterday, to allow for a measure of discretion to be exercised by the Revenue Commissioners in deciding whether to grant a deferral in particular circumstances. The detail of how this type of discretionary deferral will operate and the criteria that will be used to determine eligibility is not set out in this Bill, but instead, will be set out in guidelines that will be published by the Revenue Commissioners before they commence corresponding with liable persons about LPT in March 2013. The type of circumstances that will apply are where a liable person is unable without excessive hardship to pay LPT when it becomes payable as a consequence of a significant and unexpected financial loss or expense. This particular deferral will operate on a different basis to the existing deferral arrangements. It will not automatically be available on the making of a valid claim. Instead, a liable person must apply in writing to the Revenue Commissioners for the deferral and must meet whatever criteria will be set out in the guidelines to be published by the Revenue Commissioners.
