Dáil Éireann Debate, Tuesday - 26 July 2022
331. Deputy Neale Richmond asked the Minister for Finance if the tax liability of two persons who share the stake in a home but one is no longer willing or not in a position of mental capacity to pay their share of the property tax can be adjusted; and if he will make a statement on the matter. [39833/22]
View answerI am advised by Revenue that the Finance (Local Property Tax) Act 2012 (as amended) sets out who is responsible for the discharge of Local Property Tax (LPT) when a property is owned by two or more persons.
If two or more persons have an equal interest in a residential property, each person is individually responsible for discharging the full liability to LPT. Therefore, any owner or joint owner of a residential property on 1 November 2021 is responsible for discharging the LPT on that property for the period 2022-2025. If the LPT liability is not paid, Revenue can collect the outstanding LPT from any of the joint owners.
Where properties are in joint ownership, it is necessary for the joint owners to nominate one of the owners as the “designated liable person”. A designated liable person is responsible for submitting the LPT return and making payment of the LPT liability on behalf of all owners. Revenue sends all LPT correspondence to the designated liable person. It is possible to change the person who is the designated liable person by contacting Revenue directly. Further information on discharging an LPT liability on a jointly owned property can be obtained by visiting the Revenue website at: www.revenue.ie/en/property/local-property-tax/who-is-liable-for-lpt-and-or-household-charge/who-is-liable-for-lpt.aspx.
Regarding the situation where a person is having difficulty meeting their LPT liability, it may be possible for the person (or persons) concerned to either enter into a flexible LPT payment arrangement with Revenue or defer payment of LPT.
Revenue engages extensively with property owners to agree flexible LPT payment arrangements that best suit their circumstances and avoid unnecessary hardship. The full range of payment options, including phased arrangements, that are available to property owners can be reviewed on the Revenue website at: www.revenue.ie/en/property/local-property-tax/paying-your-lpt/index.aspx.
A person (or persons) may defer payment of LPT where certain conditions are met. There are five separate categories available for deferral of LPT: income threshold, mortgage adjusted income threshold, personal representatives of a deceased liable person, personal insolvency and hardship grounds. A qualifying person may opt to either fully defer payment of LPT or partially defer payment of LPT, with 50% paid and 50% deferred. However, it is important to note that deferred LPT remains a charge on the property until it is paid. In addition, interest accrues on the unpaid amount until it has been paid. From 1 January 2022, the rate of interest charged on all deferred amounts is 3% per year. Prior to 1 January 2022, interest was charged at the rate of 4% per year. Revenue has published detailed guidance on the deferral, or part deferral, of payment of LPT, which is available at: www.revenue.ie/en/property/documents/lpt/guidelines-for-deferral-of-lpt.pdf.
Finally, any assistance required by property owners in meeting their LPT liability or on nominating a person as a designated liable person can be obtained by contacting the LPT helpline by phone at (01) 7383626, online through the ‘MyEnquiries’ service via myAccount or in writing to LPT Branch, PO Box 1, Limerick.
