Local Property Tax relief for certain disabled and/or incapacitated individuals
On 2 May 2014, the Minister for Finance announced that the scope of two Local Property Tax (LPT) reliefs in relation to residential properties that are occupied by certain disabled and/or incapacitated individuals would be extended with effect from 1 July 2013. The extension is intended to correct anomalies and inequities that had been identified in the operation of the reliefs and, pending the enactment of further legislation, Revenue will operate the new rules on an administrative basis. The two reliefs are:
1.A reduction in the chargeable value of a property that has been adapted to make it more suitable for occupation by a person with a disability where the adaptation work has resulted in an increase in the chargeable value of the property to the extent that it moves into a higher valuation band, or, in the case of properties valued at over €1m, where the adaptation work has resulted in any increase in the chargeable value.
2.A full exemption from the charge to LPT for properties that have been constructed or acquired because of their suitability for occupation by individuals who are permanently and totally incapacitated to such an extent that they are unable to maintain themselves and whose condition is so severe that it dictates the type of property that they can live in. The exemption also applies to properties that have been adapted to make them suitable for occupation by such individuals.
In the case of the first relief, there will no longer be a requirement for the adaptation work to have been grant-aided by a local authority, provided the other qualifying conditions for this relief are met. In the case of the second relief, there will no longer be a requirement for an award from a Court or the Injuries Board or the establishment of a public trust fund, where the other qualifying conditions for this relief are met.
The revised treatment is effective from 1 July 2013 when Local Property Tax became payable. This means that some individuals who have already paid LPT may be eligible for a refund of some, or all, of the tax paid. In due course, the Minister will introduce legislation to give effect to the revised treatment.
In the meantime, Revenue will deal with affected cases on an administrative basis in line with guidelines published on its website. These Guidelines on local
property tax relief for disabled/incapacitated individuals (PDF, 956KB) can be found in the LPT section on the Revenue website. The Revenue LPT Manuals
02.11 - Permanently and totally incapacitated individuals (PDF, 141KB) and 04.03 - Property adapted for occupation by disabled persons (PDF, 125KB) have been amended to reflect the revised treatment.
Employers should note that P2C's issued by Revenue may contain details regarding deduction of LPT from an employee's pay. Employers are obliged to operate deductions as per the employee P2C. For further details on how PaycheckPlus can assist with such deductions and other payroll related matters, contact our PayrollTeam on 041 686 3000 or Request a Callback to have someone contact you at a suitable time.