Dáil Éireann Debate, Thursday - 21 March 2013
72. Deputy Michael Creed asked the Minister for Finance if the same exemptions apply in respect of liability for the property tax as to the non-principal private residence tax as they related to property owned but occupied by family members on a rent free basis as provided for in a deed of transfer; and if he will make a statement on the matter. [14390/13]
Amharc ar fhreagraThe Non-Principal Private Residence (NPPR) Charge is a matter for my colleague, the Minister for the Environment, Community and Local Government. Section 4(6) of the Local Government (Charges) Act 2009 provides an exemption from payment of the NPPR Charge in the case of a residential property that is occupied as a sole or main residence by a relative or relatives of the owner of the property on a rent-free basis. A condition that must be met for this exemption to apply is that both the property that is occupied by the relative(s) of the owner of that property, and the property that owner occupies as his or her sole or main residence, must be situated on the same property or within two kilometres of each other. I am informed by the Revenue Commissioners that this exemption does not apply in the case of the Local Property Tax (LPT). In this regard, it should be noted that the NPPR Charge, as its name suggests, applies only to properties which are not a principal private residence of the owner, whereas the LPT applies to all residential properties with very few exceptions. Therefore, in the scenario described by the Deputy and assuming that no other type of exemption applies, either the owner of the property or the occupants of that property will be liable to pay LPT. Which party is liable depends on the particular arrangements that exist between the owner and the occupants in relation to the occupation of the property. If, as appears to be the case in the scenario envisaged by the Deputy, a deed of transfer may have given the occupants an exclusive right of residence for life or for the life or lives of one or more other persons or for a period that may equal or exceed 20 years, then the occupants would be the persons liable to pay the LPT.
