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Property Taxation Collection

Dáil Éireann Debate, Tuesday - 16 April 2013

Tuesday, 16 April 2013

Questions (231)

Michael McGrath

Question:

231. Deputy Michael McGrath asked the Minister for Finance if he will confirm the details that must be supplied to the Revenue under Section 6 of the Finance (Local Property Tax) (Amendment) Bill 2013 in order for a person to avail of the reduction in the valuation of the property arising from an adaptation of the property to enable its use by disabled persons; if he will confirm if the full medical file is required by the Revenue; and if he will make a statement on the matter. [16212/13]

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Written answers

The enactment of the Finance (Local Property Tax) (Amendment) Act 2013 on 13 March introduced a number of amendments to the original Act, which includes relief for properties adapted for use by disabled persons. I would like to clarify that this relief only applies where the adaptation work increases the market value of the property. Section 15A of the Finance (Local Property Tax) Act 2012 (as amended) provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided or approved for grant aid, by a local authority. The person with the disability must occupy the property as his or her sole or main residence after the adaptation is completed. The reduction in value is limited to the lesser of the chargeable value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme. The relief ends on the sale or transfer of a property that has been adapted, unless the person with the disability continues to reside in the property.

I am advised by the Revenue Commissioners that where adaptation work has increased the chargeable value of a property, as LPT is a self-assessed tax, the liable person him or herself determines the reduction in the chargeable value of the property and calculate the revised chargeable value and decides which value band is relevant to the property. In common with all other liable persons, he or she should then include the appropriate valuation band on their LPT Return, select a payment preference, and submit the return to Revenue, online or in paper.

I am advised by Revenue that because LPT is a self assessed tax, the liable person does not need to submit any supporting documentation to Revenue when filing their LPT Return. All relevant supporting documentation to support the reduction in the property’s chargeable value should, however, be retained by the liable person in the event that Revenue decides to check the validity of the claim at a later stage as part of its normal compliance programme.

In that regard, I am further advised that supporting documentation would not include medical details of the disabled person but would include, for example, evidence of:

- Receipt of local authority grant or approval for grant

- Scheme under which grant received

- Carrying out of adaptation work

- Details of work carried out

- Cost of adaptation work.

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