Dáil Éireann Debate, Wednesday - 6 December 2023
62. Deputy Noel Grealish asked the Minister for Finance if the local property tax applies to buildings only and not to each unit in a multi-unit, pre-1963 property; and if he will make a statement on the matter. [54049/23]
View answerThe Deputy has made reference to a “pre-1963” property. It is assumed the Deputy is referring to a building that was subdivided into separate units prior to the coming into force of the Planning and Development Act 1963.
Local Property Tax (LPT) is a self-assessed tax and is chargeable in respect of a building, or a part of a building, that is in use, or suitable for use, as a dwelling. A single building may contain several separate residential properties within it, for example, a building containing apartments / flats. Where an individual residential property within a building is suitable for use as dwelling in its own right, i.e., a self- contained dwelling, it is considered a “relevant residential dwelling” and is subject to LPT.
In the example of a property, where a such a property has been subdivided (whether it was a pre or post 1963 property), the treatment for LPT depends on the facts and circumstances of the case. I am advised by Revenue that the strict legal position is that any part of a building that is capable as being used as a dwelling should be treated as a separate residential property that incurs a separate LPT liability.
However, Revenue recognises that certain types of dwelling that are an integral part of a larger building may be difficult to value. In such cases, where the same person owns the entire building, Revenue accepts that that person (i.e. the liable person) can opt to value the overall building, or the separate residential properties, for LPT purposes. For further information, please see section 6 of the Tax and Duty Manual Part 01-01, regarding the meaning of a “residential” property: www.revenue.ie/en/tax-professionals/tdm/local-property-tax/part-01/01-01.pdf.
