Based on the information provided by the Deputy it is not possible to give a definitive reply. However, the following information may be of relevance, depending on the circumstances. While there is no overall exemption from the Local Property Tax (LPT) for a person with a disability, or for houses which have been specially adapted to cater for a resident with a disability, in certain limited circumstances an exemption may apply. Section 10B of the Finance (Local Property Tax) Act 2012 (as amended) provides that an exemption from the charge to LPT may apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence, where an award has been made by the Personal Injuries Assessment Board or a court, or where a trust has been established, specifically for the benefit of such individuals.
I am advised that section 189A of the Taxes Consolidation Act 1997 (as amended), defines 'incapacitated individual' as an individual who is permanently and totally incapacitated, by reason of mental or physical infirmity, from being able to maintain himself or herself. Entitlement to the exemption provided for in section 10B will depend on whether the extent of a person’s disability is such that they are permanently and totally incapacitated from being able to maintain himself or herself.
Where an exemption cannot be claimed under section 10B of the Act, an incapacitated person may qualify for a reduction in the market value of their property under section 15A of the 2012 Act. This section 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. I am informed by the Revenue Commissioners that this relief only applies where the adaptation work increases the market value of the property. Furthermore, 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 market value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme.
The LPT relief for adaptations for the disabled has been linked to the grant scheme for adaptations to ensure the relief is targeted at cases where necessary adaptations are made. It also ensures consistency of approach to the issue of adapting homes to assist disabled persons to live in the community.
