Dáil Éireann Debate, Tuesday - 8 April 2014
74. Deputy Terence Flanagan asked the Minister for Finance the position regarding the property tax for houses adapted for use by persons with a disability (details supplied) in Dublin 13; and if he will make a statement on the matter. [15962/14]
View answerI am advised by Revenue that, while there is no specific exemption from Local Property Tax (LPT) for a person with a disability, or for domestic properties that have been modified to cater for a person with a disability, an exemption may apply in certain limited circumstances.
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. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted.
Also, 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 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.
In regard to the specific case to which the Deputy refers I can confirm that there is no provision in the legislation to provide for an exemption from LPT in the circumstances outlined. However, as I recently advised the House in my reply to Question 15021/14, my officials are currently examining the operation of Local Property Tax (LPT) reliefs in respect of disabled and/or incapacitated people and will make recommendations to me on the issue shortly.
Finally, Revenue has advised me that a member of LPT Branch will make contact with the person in question in the coming days to discuss various issues that he has raised in correspondence.
