While there is no specific exemption from Local Property Tax (LPT) for a person 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.
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, and where the adaptation 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 chargeable value attributable to the adaptation work carried out on the property and the maximum grant payable under the relevant local authority scheme. The relief ends on the sale or transfer of a property that has been adapted unless the person with the disability continues to reside in the property. 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.
I understand that my officials, in consultation with the Revenue Commissioners, are currently looking at issues related to the operation of the LPT reliefs available for certain disabled and/or incapacitated individuals.