Michael Healy-Rae
Question:167. Deputy Michael Healy-Rae asked the Minister for Finance if he will clarify a situation regarding the local property tax (details supplied); and if he will make a statement on the matter. [8059/14]
View answerTuesday, 18 February 2014
Questions (167)
Written answers
The legislation governing the administration of Local Property Tax (LPT) provides for a number of exemptions from LPT, two of which are particularly relevant to those who purchase a residential property.
Firstly, section 8 of the Finance (Local Property Tax) Act 2012 (as amended) provides an exemption from LPT for a property, either new or second hand, purchased between 1 January 2013 and 31 December 2013 which is occupied by the purchaser as his or her sole or main residence. The exemption will apply up to the end of 2016, provided the purchaser does not sell or otherwise transfer ownership of the property and continues to live in it as his or her sole or main residence.
The second exemption, which is the one referred to by the Deputy, relates to section 9 of the 2012 Act (as amended) and provides for an exemption from LPT to the end of 2016 for newly constructed residential properties, provided the conditions as referred to in Section 6 of the Act are met.
These conditions are that the property:
- has been completed but not sold by the person who has constructed the property or who has had the property constructed,
- has not been occupied as a dwelling,
- has not produced an income, and,
- where the property has been built by a developer, has been part of the trading stock of the developer.
Where a purchaser buys a property that meets these conditions between 1 January 2013 and 31 October 2016, the exemption will apply up to the end of 2016. It is not relevant whether the purchaser owns other properties at the same time.