Updated on 7 November 2015 by Accountant
Local Property Tax (LPT) is a tax payable on the market value of residential properties in Ireland. LPT was introduced from 1st July 2013 and is collected by the Revenue Commissioners.
Revenue from the LPT will support local services such as public parks, libraries, open spaces and leisure amenities, planning and development, fire and emergency services, maintenance and cleaning of streets, and street lighting.
The Revenue is sending information about LPT to house owners by post. Revenue will not be writing to house owners who are paying LPT by direct debit or deduction from pay/pension/social welfare payment. They don’t need to contact Revenue, because their existing payment method will automatically roll over for 2016.
Taxpayers who prepare their own VAT or PAYE/PRSI returns received notification via ROS about their Local Property Tax (LPT). An information letter on LPT is in their ROS inbox. Those ROS customers can directly access their residential property details and their LPT Return on the on-line system via a link on their “My Services” page in ROS, they don’t need to input a Property ID or PIN which is required by non-ROS customers.
Residential Property for LPT purposes is any building which is used as residence.
Who need to pay LPT?
Generally the “Liable Persons” are:
- Owners of Irish residential property (doesn’t matter if they live in Ireland or not),
- Landlords who rent properties for short-term (less than 20 years) lease,
- Lessees who hold long-term (more than 20 years) lease,
- Other defined persons, for details please check Revenue website.
Person who need to pay LPT needs to complete and submit the Return, calculate the liability and pay any tax due.
I have received a Return from Revenue and I am not the Liable Person to pay LPT
You are renting a house, you have lease for one year. Your landlord (is the owner of the property) is Liable Person to pay LPT.
You need to send letter to Revenue to: LPT Branch, P.O. Box 1, Limerick.
You prepare a letter with information of:
- the name, address and PPS number of Liable Person (your Landlord),
- the reason why you are not the Liable Person, (because you are lessee with one year lease),
- supporting documentation (enclose the copy of your lease agreement/contract).
The Revenue will consider your letter and make a decision on the matter. They will update their records (Register of residential properties). If you ignore the return and you won’t contact Revenue, you will be liable to pay the tax.
I am a Liable Person, what I need to do?
1. You need to decide what’s the current market value of your house/apartment.
You need to find out what’s the market value of your property. The value, you identify as market value of your property, will be valid for years 2016, 2017, 2018 and 2019.
Or you can ask professional valuer for valuation.
2. You identify the Valuation Band and tax charge.
Market value of your property is €165,000. Your Valuation Band is 150,001 – 200,000 and Standard LPT charge for 2016 is €315.
LPT Charges for 2016
|Valuation band||Standard rate||Some Local Authorities reduced LPT Rate by|
|€0 to €100,000||€90||€88||€87||€85||€83||€81||€76|
|€100,001 to €150,000||€225||€221||€218||€213||€208||€202||€191|
|€150,001 to €200,000||€315||€310||€305||€299||€291||€283||€267|
|€200,001 to €250,000||€405||€398||€392||€384||€374||€364||€344|
|€250,001 to €300,000||€495||€487||€480||€470||€457||€445||€420|
3. You can complete and submit Return
The quick and easy way is to complete return online at www.revenue.ie. You will need Property ID and PIN (both printed on the paper return you got by post from Revenue) and your PPS number.
You can complete paper return which you’ve got by post from Revenue.
I don’t have Property ID, PIN
If you own a residential property and have not received Property ID and PIN or do not have an Irish PPSN, you are still liable for the tax and you need to file your LPT Return and pay tax.
You can file your LPT Return as follows:
- Click on the “Login to LPT Online” button. Select the “I have not received a Property PIN” tab and input the following:
- Your PPSN or tax reference number,
- Your name, and
- The address details of your property,
- Click “Login”.
If you are non-resident in Ireland and do not have an Irish PPSN, you will be asked to provide details of your country of residence and your tax reference number in that country.
- Or you can call the LPT helpline on 1890 200 255 (mobile phone users or customers from abroad can call +353 1 702 3049) and they will file your Return on-line. You will need to provide property details, PPSN and details of how you will pay the tax (e.g. bank account information).
The return you filed for 2013 and the valuation you provided, is valid for the years up to 2019. You won’t need to file another return in 2016, 2017 and 2018.
4. Choose your preferred payment option (Single Debit Authority, Debit/Credit Card etc.) and check if you qualify for a deferral or exemption.
LPT Payment methods
A: Online by Logging to LPT Online
B: Deduction at source/Direct Debits – payments such as deduction from Salary/Occupational Pension etc. Contact Revenue if you want to choose this option.
C: Cash through payment service providers:
- An Post at any outlet,
- Omnivend at self service kiosks in various locations,
- Payzone at shops and outlets displaying the logo.
You should detach and retain the payslip from the bottom of my LPT1 Return. This payslip contains barcoded information used to process the payment. If it is not possible you may use the Property ID number or your PPSN. There will be a transaction charge for cash payments which is payable to the service provider.
Payments such as deduction at source, direct debit, credit and debit card payments will automatically apply for 2016 and subsequent years. If you want to change it, you need to notify Revenue.
You will find more information what will happen in 2016 here.
I can’t afford to pay LPT tax
If you can’t afford to pay you may qualify for full or partial deferral. Revenue will charge you 4% interest per year for deferral. Deferred amount including interest will attach to your property and you will have to pay that before the property is sold.
Following properties are exempt from LPT:
- New and unused properties purchased from developer between 1 January 2013 and 31 October 2016, are exempt until 2016,
- Properties purchased by a first time buyer between 1 January 2013 and 31 December 2013, are exempt until 2016, but property needs to be used as person’s main residence,
- Properties in unfinished housing estates (called “ghost estates”),
- Mobile home, vehicle or a vessel,
- Property fully subject to commercial rates,
- Other defined properties, for full details please visit Revenue website.
Forms for Making Certain Deferrals
You need to complete Form LPT2 if you claim a deferral on the basis of:
- Personal insolvency
- Hardship grounds:
This category of deferral is for situations where a liable person (who does not qualify for an income based deferral) was in a position to pay his or her LPT until something happened to cause a significant financial loss or cost, as a result of which he or she is unable to pay the LPT. Examples of such expenses are: emergency medical expenses, expenses in connection with a serious accident or death of a family member, loss of employment etc. or
- a deferral claim is made by a personal representative of a deceased liable person.
The Form LPT1 must be completed as well. The LPT2 and guidance notes are on Revenue’s website here.
You need to complete LPT1 if you claim full or partial deferral on the basis of the relevant income thresholds.
What records should I keep about LPT
Revenue will not issue receipt for LPT. I recommend that you keep records as follows:
Keep a copy of your LPT Return with information:
- The market value band chosen for your property,
- The amount of LPT due,
- The payment option chosen and, if applicable, the frequency of payment (monthly or weekly).
Keep a record of your Property ID and PIN.
Keep copy of bank/credit card statement where payment is indicated or receipt from service provider if paid by cash.
If you filed your Return online print all information available there under your login for your records. There are three tabs with information about your property, tax, payment method, amount outstanding if any etc.
What’s Revenue going to do with non-compliance?
Revenue will collect LPT tax due by these ways:
- Mandatory deduction from your employment income, occupational pension or certain Government payments,
- Attachment of your bank account,
- Referral of the debt to a Sheriff or a Solicitor for collection,
- The withholding of any refund of other tax as payment against LPT due.
If you won’t pay LPT tax, you will also not qualify for a Tax Clearance Certificate.
Self-employed persons or companies will also be liable to a late filing surcharge on Income Tax or Corporation Tax Returns.
Interest charges at 8% per annum apply to late payment of LPT and penalties may also arise.
Any unpaid LPT attaches to the property and you will not be able to sell it without paying any LPT, interest and penalties due.
- By Post: LPT Branch, P.O. Box 1, Limerick
- Phone: LPT helpline at 1890 200 255 (ROI only), +353 1 7023049 (from outside ROI)
- Email: firstname.lastname@example.org
LPT Tips for Employers
The Irish Tax Institute issued a comprehensive bulletin about the key issues for employers to operate Local Property Tax (LPT).