The Local Government (Household Charge) Act 2011 provides the legislative basis for the household charge. Under the Act, an owner of a residential property on the liability date of 1 January 2012 is liable to pay the household charge, unless otherwise exempted or entitled to claim a waiver. The household charge is on a self-assessment basis and it is a matter for an owner of a residential property on the liability date to determine if he/she has a liability and, if so, to declare that liability and pay the household charge.
The Local Government (Household Charge) Act 2011 provides for a number of exemptions and waivers from payment of the household charge. The exemptions from payment of the household charge are—
Residential properties that are part of the trading stock of a business and have not been sold or been the source of any income since construction,
Residential property owned by a Minister of the Government, a housing authority or the Health Service Executive,
Voluntary and co-operative housing,
Residential property subject to commercial rates and wholly used as a dwelling,
Residential property owned by certain charities or discretionary trusts, and
Residential property which an owner has vacated due to long-term mental or physical infirmity (e.g. elderly person that has moved into a nursing home).
The waivers which apply concern—
Owners of residential property entitled to mortgage interest supplement, and
Owners of houses in certain unfinished housing estates.
It is estimated that, having regard to exemptions and waivers, some 1.62 million residential properties are liable to the household charge.