Terence Flanagan
Ceist:58. Deputy Terence Flanagan asked the Minister for Finance the position regarding the payment of local property tax (details supplied); and if he will make a statement on the matter. [11426/14]
Amharc ar fhreagraThursday, 6 March 2014
Ceisteanna (58)
Freagraí scríofa
The legislation governing the administration of Local Property Tax (LPT) provides for a number of exemptions from LPT, two of which are particularly relevant to those who purchased a residential property during 2013. Firstly, under section 9 of the Finance (Local Property Tax) Act 2012 (as amended) any new and previously unused residential property that was purchased from a builder or property developer between 1 January 2013 and 31 October 2016 will be exempt from LPT up to the end of 2016.
The second relates to the exemption under section 8 of the 2012 Act (as amended), which was originally intended to only apply to first-time buyers, which is clear from the heading to the section: "Exemption for first-time buyers". The Deputy may recall that mortgage interest relief was phased out on mortgages taken out after 31 December 2012 and this measure was a transitional provision to help first-time buyers in the first year after the abolition of mortgage interest relief. However, as written, the exemption benefits any buyer, not just a first-time buyer. The result is that a person who purchased a second hand house in 2013 and occupies it as a sole or main residence is entitled to the exemption under section 8 regardless of whether she or he is a first-time buyer. The exemption will apply up to the end of 2016, provided the purchaser does not sell or otherwise transfer ownership of the property and continues to live in it as his or her sole or main residence.
I should also point out that the exemptions in question do not apply to residential properties purchased in 2012 as is suggested in the Details Supplied with the Question.