I am advised by the Revenue Commissioners that in accordance with Section 13 of the Finance (Local Property Tax) Act 2012 (as amended), liability for Local Property Tax (LPT) arises where a person owns a residential property on a "liability date", which for 2014 and subsequent years is 1 November.
A definite liability date is essential to ensure certainty as to the identity of person liable for LPT in respect of a given property for a year.
Section 119 of the Act sets out the dates for payment of the Local Property Tax and clarifies that while the LPT is due by reference to a liability date it is not payable until the later date of 1 January of the following year.
Having a liability date two months prior to the payment date gives liable persons time to make the necessary provisions and to choose from the wide range of options available for paying the tax. In particular, the liable person can put the required arrangements in place to ensure that phased payments, by way of direct debit or deduction at source from employment income, occupational pension or from certain Government payments.
Where an individual sells their residential property after 1 November in any given year, provided that they owned the property on 1 November, they are liable to pay LPT on that property in respect of that liability date. It is worth noting that if such a person then buys a different property after the 1 November liability date, s/he will not incur a liability in respect of that property until the next liability date of 1 November in the following year.
I have no plans to change the legislation in this regard at this time.
