I am advised by Revenue that any property that is in use as, or that is suitable for use as, a dwelling house is subject to both the Household Charge (HHC) and Local Property Tax (LPT).
Therefore, the condition of a property is not relevant where the property is actually occupied as a dwelling house. However, a property that is derelict to such an extent that it is not suitable for occupation (or not actually occupied) is not taxable.
In the first instance, it is up to a property owner to 'self-assess' as to whether a property is liable or not. This means that, in the case of LPT, there is normally no requirement on the owners of derelict property to declare such structures as taxable, unless the property owner receives a notification and/or valuation estimate from Revenue.
In such circumstances the onus is on the property owner to inform Revenue that the property is derelict and unfit for habitation. The property owner may also have to provide supporting documentation to Revenue to back up his or her claim. Depending on the circumstances of the case, Revenue may or may not agree that a particular property is not liable to LPT.
Revenue has also confirmed to me that while it is not possible to provide a prescriptive set of criterion for derelict properties, it advises property owners as a general rule to take account of the structure of the building including whether it has a roof, windows and sanitary facilities. However the lack of utilities such as water or electricity does not necessarily mean a residential property can be regarded as derelict.
Where a derelict property is renovated to a habitable level, it becomes a 'relevant residential' property for LPT and is liable from the following valuation period. For example, if a property is renovated between 1 May 2013 and 1 November 2016, the first valuation period, then it becomes liable for LPT from 1 January 2017 onwards.
