Dáil Éireann Debate, Tuesday - 12 November 2013
77. Deputy Niall Collins asked the Minister for Finance if a person with a local authority shared ownership property is liable for the full amount of the local property tax; and if he will make a statement on the matter. [47856/13]
View answerThe Finance (Local Property Tax) Act 2012 (as amended) provides that a liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date, which was 1 May 2013 for 2013 and 1 November 2013 for the year 2014. Section 7 of the Act provides that local authorities will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties in question are used to accommodate people with special housing needs such as the elderly or people with disabilities.
However, residential properties purchased under the various local authority shared ownership schemes will also be subject to LPT and that the liable person in these instances will be the purchaser. This is on the basis that, under these schemes, the purchaser acquires a leasehold interest in the property for a period that exceeds 20 years. Such a purchaser is in the same position as a property owner who purchases a residential property with a mortgage from a financial institution. Accordingly, there is no reason why such an individual should not be liable for payment of the LPT on the property.
I am informed by the Commissioners that LPT is a self-assessed tax and it is a matter for the person who is purchasing a local authority shared ownership residential property to calculate the tax due based on his or her assessment of the chargeable value of the property and to make a Return to Revenue.
