I confirm I have received the letter mentioned by the Deputy. The position is as follows. The Government decided that a universal liability should apply to all owners of residential property with a limited number of exemptions, in order to keep the rate of the tax as low as possible. There is no reduced rate for residents of islands per se.
The LPT is a self-assessed tax and it is a matter for the property owner, in the first instance, to calculate the tax due based on his or her assessment of the market value of the property. The charge to LPT is based on the chargeable value of the residential property and this is defined in the Finance (Local Property Tax) Act 2012 (as amended) as the price that the unencumbered fee simple of a residential property might be expected to fetch on a sale on the open market were that property to be sold on the valuation date of 1 May 2013, in a manner that would secure the best possible price for the property.
The location of a property on an island is a factor which could be taken into account in determining its value.
Where a property owner makes their property valuation in an honest and reasonable manner, that valuation will not be challenged by Revenue, in accordance with its normal Customer Service Charter.