Local Property Tax (LPT) is a tax paid on residential properties. When you sell your residential property, you need to be able to confirm to the purchaser that all LPT has been paid up to date and, similarly, when you are buying you must make sure that you get this confirmation from the vendor. LPT was introduced in 2013 and receipts must be provided up to the date of sale. The tax must be paid in one payment on 12th January or you can arrange to pay it by week or month if you prefer.
LPT is a self-assessed tax which means that you must value your own property and then pay the tax due using a system of tax bands set up by the Revenue.
New valuations required for 2022
Your property is liable for LPT if it is considered a residential property on 1st November 2021. This year, you must submit a new property valuation to the Revenue and this must be done before 7th November 2021. If you have not submitted the valuation by that date, you can pay the tax and submit it afterwards.
How to prepare your new valuation
There is no need to retain a professional valuer to inspect your property and prepare a valuation. Many people will come to a valuation based on properties advertised by estate agents. The Revenue has provided a method for checking this online and you can access it in the links at the bottom of this post.
There are a number of factors that you should consider when determining your valuation and you may be able to avail of a number of exemptions and/or reductions. You should keep any documentation or supporting evidence you used to determine the valuation in case the Revenue requests a review of your method.
Pyrite and mica
This year LPT exemptions are available for residential property owners whose properties have been:-
- Certified as having significant pyrite damage under the Pyrite Regulations OR
- Confirmed as being eligible for consideration of a grant fore remediation work under the Defective Concrete Blocks Grant Scheme administered by Mayo and Donegal County Councils (pyrite or mica).
Regardless of whether your property is eligible for the LPT exemption or not, you can take account of pyrite or mica damage when self-assessing the market value of your property as at 1 November 2021.
Granny flats and bedsits
A granny flat may be treated as a separate residential property where it adjoins a main property but is a self-contained unit which is in use or suitable for use as a dwelling. If the granny flat and the adjoining property are both owned by the same person, they may be treated as one single residential property for the purposes of LPT, in which case details of the layout and use should be submitted to Revenue.
If a building contains units that are not suitable for use as a self-contained unit (eg a bedsit), then the building as a whole will be treated as one property.
Properties with associated land and other buildings
The valuation must include the value of lands and other building associated with the property. So this would include gardens, yards or patios as well as driveways or parking spaces. Garages, sheds and greehouses should be included, as well as any garden room or home office.
You should only include land up to one acre as part of the valuation. This is commonly known as the “curtilage” of the property and would normally include the garden shed or other buildings/gardens used for the enjoyment of the property.
Residential properties on a farm
If lands adjoining a farmhouse are used as farmland then you do not need to include them in your valuation. Similarly, sheds used for farming purposes can be excluded. These might be sheds that are used to house farm animals or for other farming-related purposes.
Properties adapted for occupation by a person with a disability
In these circumstances it may be possible for you to reduce your valuation by €87,500, which will most likely push your valuation into a lower valuation band and reduce the amount of LPT payable.
There are a number of requirements before you can qualify for this relief:-
- The property must have been adapted to make it suitable for a person with a disability.
- The value of your property must have increased as a result of the works carried out.
- The property must be occupied by a person with a disability as their sole or main residence.
- You must have received a local authority grant towards the costs of the works or, if you did not receive a grant, then you must have received approval from the Revenue for the relief.
Properties that have been built, purchased or adapted for a person who is totally and permanently incapacitated can avail of a full exemption.
The person who has the disability doesn’t have to be the owner of the property in order to qualify.
Tax bands for 2022 – 2025
Once you have come to a decision on the new valuation of your property, the amount due for LPT will be based on a set list of tax bands which are available from the Revenue. The tax bands from 2022 – 2025 are as follows:-
|Valuation Band Number||Valuation Band €||LPT charge basic rate €|
|1||0 – 200,000||90|
|2||200,001 – 262,500||225|
|3||262,501 – 350,000||315|
|4||350,001 – 437,500||405|
|5||437,501 – 525,000||495|
|6||525,001 – 612,500||585|
|7||612,501 – 700,000||675|
|8||700,001 – 787,500||765|
|9||787,501 – 875,000||855|
|10||875,001 – 962,500||945|
|11||962,501 – 1,050,000||1,035|
|12||1,050,001 – 1,137,500||1,189|
|13||1,137,501 – 1,225,000||1,408|
|14||1,225,001 – 1,312,500||1,627|
|15||1,312,501 – 1,400,000||1,846|
|16||1,400,001 – 1,487,500||2,064|
|17||1,487,501 – 1,575,000||2,283|
|18||1,575,001 – 1,662,500||2,502|
|19||1,662,501 – 1,750,000||2,721|
If your property is valued at more than €1.75 million, a different system is used. In those cases, the LPT charge is calculated as the sum of:
- 1029% of the first €1.05 million of declared market value
- 25% of the portion of the declared market value between €1.05 million and €1.75 million.
- 3% of the portion of the declared market value above €1.75 million.
- Some local authorities have also used Local Adjustment Factors to change the basic rates set out above. You should also see if these factors affect your property before paying the tax due.
You can use the Revenue valuation tool to help decide your new valuation. It can be accessed here.
You can check the amount of LPT payable on your property by accessing the Revenue LPT calculator here.
If you need more information on the above, or any other aspect of your property transaction, fill out the form below and we’ll be in touch.