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Property Taxation Exemptions

Dáil Éireann Debate, Wednesday - 18 December 2013

Wednesday, 18 December 2013

Ceisteanna (81, 82)

Finian McGrath

Ceist:

81. Deputy Finian McGrath asked the Minister for Finance if the family of a disabled child who paid for the renovation of their home out of their own finances is entitled to an exemption from the local property tax; and if this is not the case, the reason for same. [54725/13]

Amharc ar fhreagra

Finian McGrath

Ceist:

82. Deputy Finian McGrath asked the Minister for Finance the reason the family of a disabled child is being forced to pay the local property tax after paying for home renovations (details supplied). [54727/13]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Finance)

I propose to take Questions Nos. 81 and 82 together.

It is also unclear whether the Deputy is referring to two separate families, or whether both Questions relate to the same case.

Based on the information supplied by the Deputy it is not possible to provide a definitive reply, however, the following general information may be useful.

While there is no specific exemption from Local Property Tax (LPT) for a person with a disability or for houses which have been modified to cater for a person with a disability, in certain limited circumstances an exemption may apply. Section 10B of the Finance (Local Property Tax) Act 2012 (as amended) provides that an exemption from the charge to LPT may apply to a residential property purchased, built or adapted to make it suitable for occupation by a permanently and totally incapacitated individual as their sole or main residence, where an award has been made by the Personal Injuries Assessment Board or a court, or where a trust has been established, specifically for the benefit of such individuals. In the case of adaptations to a property, the exemption will only apply where the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence.

I am advised that section 189(A) of the Taxes Consolidation Act 1997 (as amended), defines 'incapacitated individual' as an individual who is permanently and totally incapacitated, by reason of mental or physical infirmity, from being able to maintain himself or herself. Entitlement to the exemption provided for in section 10B will depend on whether the extent of a person’s disability is such that they are permanently and totally incapacitated from being able to maintain himself or herself.

Section 15A of the 2012 Act (as amended) provides for a reduction in the market value of a residential property that has been adapted for occupation by a disabled person where the adaptation has been grant-aided or approved for grant aid, by a local authority, and where the adaptation increases the market value of the property. As the Deputy states in both Questions that the family has paid for the renovation themselves, it appears that they would not be eligible to apply for this relief.

It should also be noted that the impact of such adaptations on a property may decrease its value which may in turn impact on the LPT liability.

With regard to Question 54727/13, given the circumstances of the case, Revenue will make direct contact with the person to discuss the specifics and advise on any possible entitlement under either section 10B or section 15A of the 2012 Act (as amended).

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