I assume that the Deputy is referring to the relief available under section 15A of the Finance (Local Property Tax) Act 2012 (as amended) for properties adapted for use by disabled persons. At the outset I would like to clarify that this relief only applies where the adaptation work increases the market value of the property. I would also refer the Deputy to my detailed reply to a similar Question No. 231 on 16th April. The Deputy has requested that all possible scenarios that may arise under this relief will be catered for without adversely discriminating based on the nature of the disability or disabilities in question. The relief under section 15A of the 2012 Act is provided to a person who has a disability within the meaning of section 2 of the Disability Act 2005. Under section 2 of the 2005 Act, disability means a substantial restriction in the capacity of the person to carry on a profession, business or occupation in the State or to participate in social or cultural life in the State by reason of an enduring physical, sensory, mental health or intellectual impairment. I am satisfied, therefore, that the LPT legislation provides for the widest possible application of the relief.
Section 15A of the 2012 Act 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.
I am advised by the Revenue Commissioners that where adaptation work has increased the chargeable value of a property, the liable person determines the reduction in the chargeable value of the property and calculates the revised chargeable value and decides which valuation band is relevant to the property. He or she should include the appropriate valuation band on his or her LPT Return, select a payment preference, and submit the return to Revenue. No supporting documentation is required to be submitted with the Return.
It should also be noted that the impact of such adaptations on a property may decrease its value which may in turn impact on the LPT liability.
