The interest rate for Deferrals of Local Property Tax (LPT) in respect of the current ‘Valuation Period’ (2013 to 2021) is 4%. The table below, in columns 1 to 4, sets out the number, value and accrued interest to date on Deferrals taken out each year from 2013 to 2020 (Deferrals for 2021 won’t attract interest if payment is made this year). Columns 5 and 6 in the table show the impact if the interest rate for the years in question was set at 0.5%.
Year
|
No of deferrals
|
Deferred Liability currently on record €M
|
4% Interest Accrued to date €M
|
0.5% Interest Rate €M
|
Reduction in amount of interest €M
|
2013
|
23,134
|
2.9
|
0.9
|
0.1
|
0.8
|
2014
|
30,081
|
7.1
|
2.2
|
0.27
|
1.9
|
2015
|
36,319
|
7.8
|
2.0
|
0.25
|
1.8
|
2016
|
44,641
|
9.1
|
2.0
|
0.25
|
1.8
|
2017
|
47,735
|
10.0
|
1.8
|
0.23
|
1.6
|
2018
|
46,331
|
9.9
|
1.4
|
0.17
|
1.2
|
2019
|
45,119
|
9.8
|
1.0
|
0.12
|
0.9
|
2020
|
43,393
|
10.4
|
0.65
|
0.08
|
0.6
|
Total
|
|
|
12.1
|
1.5
|
10.6
|
The interest rate to be applied to Deferrals of LPT in the new ‘Valuation Period’ (2022 to 2025) is reduced to 3%, as provided for in the Finance (Local Property Tax) (Amendment) Act 2021.