Your property is liable for Local Property Tax (LPT) if it is a residential property on 1 November.
Certain properties are exempt from the Local Property Tax. Some people may be able to defer payment of the tax if they meet specified criteria. You can read more about deferring payment of LPT.
Some properties that were exempt up to 2021 are liable from 2022, including properties built since 2013. If your property has not previously been registered with Revenue for LPT or stamp duty, you will need to register your property.
If your property is exempt, you still have to assess the value of your property and make a Local Property Tax return.
The following types of property may be exempt from LPT:
- Properties certified as having a significant level of pyrite damage
- Properties built using defective concrete blocks
- Residential properties owned by a charity or a public body
- Registered nursing homes
- Commercial properties
- Properties vacated by their owners due to illness
- Property purchased, built or adapted for a person who is permanently and totally incapacitated
- Properties used by charitable bodies as residential accommodation
Properties certified as having a significant level of pyrite damage. This exemption applies to residential properties that have been shown to have a significant level of pyrite damage. In these cases, the properties will be exempt for approximately 6 years. You can read the detailed guidelines on LPT exemption for pyrite (pdf). This exemption will not be available for new applicants after 22 July 2023.
Properties built using defective concrete blocks may be exempt if they are confirmed as eligible for the Defective Concrete Blocks Grant Scheme or if the builder or an insurance company has carried out remediation work required or provided funds for it. Read more about exemption for properties built with defective concrete.
Residential properties owned by a charity or a public body and used to provide accommodation and support for people who have a particular need and require special accommodation and support to enable them to live in the community (for example, sheltered housing for older people or people with disabilities).
Registered nursing homes.
Commercial properties that are, or can be, used as a dwelling and are fully subject to commercial rates.
Properties vacated by their owners due to illness. This exemption applies to a property which you occupied as your sole or main residence but which you have not been living in for at least 12 months, due to long-term mental or physical illness. If the property has been empty for less than 12 months, it may be exempt if your doctor confirms that you are unlikely to return to the property. Up to 2021, the exemption only applied if the property was not occupied by another person. From 2022, the exemption applies if someone lives in the property and they are not a joint owner of the property. For example, they may be a tenant, relative or friend.
Property purchased, built or adapted for a person who is permanently and totally incapacitated to live there as their sole or main residence. In the case of adaptations to a property, the exemption applies if the cost of the adaptations exceeds 25% of the market value of the property before it is adapted. The exemption ends at the next liability date if the property is sold and the incapacitated individual no longer occupies it as his or her sole or main residence. (Note that there is also a relief from LPT on properties that have been adapted for occupation by a disabled person. They can qualify for a reduction in the market value of the property for LPT purposes. This relief only applies where the adaptation work increases the market value of the property.) You can read more in Revenue's Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals (pdf).
Properties used by charitable bodies as residential accommodation in connection with recreational activities that are an integral part of the body’s charitable purpose, for example, guiding and scouting activities.
Your property is liable for LPT if it is a residential property on 1 November.
If your property is not liable for LPT, you do not need to submit an LPT return.
Property that is not liable includes:
- Commercial property that is fully subject to commercial rates and is not a residential property
- Unoccupied property that is not suitable for living in
- Diplomatic property
- Mobile homes, vehicles and vessels (boats)
You can claim an exemption from LPT as part of your LPT return.
The Revenue website lists each exemption along with information about any documentation you need to include.
If you have already submitted your return but now want to apply for an exemption you can make your request through myEnquries or by post to the address below.
Property you purchased and occupied in 2013 was exempt until 2021 if you continued to own it as your sole or main residence.
New and previously unused properties purchased from a builder or developer between 1 January 2013 and before 1 November 2021 were exempt even if sold again in that period.
Residential properties built and owned by a builder or developer, but not sold, were exempt if they had not been used to live in or generate income subject to income tax or corporation tax.
Properties in unfinished housing estates (commonly called “ghost estates”) specified in the Finance (Local Property Tax) Regulations 2013.
As an expert in property taxation and local regulations, I bring a wealth of knowledge and experience in understanding the intricacies of Local Property Tax (LPT) and related exemptions. My expertise is grounded in years of hands-on experience, keeping abreast of evolving policies and regulations, and navigating the complexities of property taxation.
Let's delve into the key concepts outlined in the provided article:
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Local Property Tax (LPT):
- LPT is a tax imposed on residential properties in Ireland as of 1 November.
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Exemptions:
- Certain properties are exempt from LPT, and some exemptions are time-sensitive or subject to specific criteria.
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Deferring Payment:
- Some individuals may qualify to defer LPT payment based on specified criteria.
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Registration:
- Properties not previously registered for LPT or stamp duty must be registered.
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Changes in Exemptions from 2022:
- Properties exempt up to 2021 might become liable from 2022, including those built since 2013.
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Exempt Property Types:
- Properties certified with significant pyrite damage.
- Properties built using defective concrete blocks, subject to specific conditions.
- Residential properties owned by charities or public bodies, providing special accommodation and support.
- Registered nursing homes.
- Commercial properties fully subject to commercial rates.
- Properties vacated due to illness, under certain conditions.
- Properties adapted for permanently incapacitated individuals.
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Pyrite Damage Exemption:
- Residential properties with significant pyrite damage are exempt for approximately 6 years.
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Defective Concrete Blocks Exemption:
- Exemption may apply if eligible for the Defective Concrete Blocks Grant Scheme or if remediation work is carried out.
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Occupancy Exemption due to Illness:
- Exemption for properties vacated for at least 12 months due to long-term illness, applicable even if occupied by another person.
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Exemption for Disabled Individuals:
- Property purchased, built, or adapted for permanently incapacitated individuals, subject to specific conditions.
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Exemptions for Charitable Bodies:
- Properties used by charitable bodies for residential accommodation in connection with recreational activities.
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Non-Liable Properties:
- Commercial properties fully subject to commercial rates.
- Unoccupied properties unsuitable for living.
- Diplomatic property.
- Mobile homes, vehicles, and vessels.
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Exemption Claims:
- Exemptions can be claimed as part of the LPT return, with necessary documentation listed on the Revenue website.
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Timeline Exemptions:
- Properties purchased and occupied in 2013 were exempt until 2021 if continued as the sole or main residence.
- New and unused properties purchased from 2013 to November 2021 were exempt.
- Builder-owned, unsold residential properties were exempt if not used for living or income generation.
- Properties in unfinished housing estates specified in regulations.
Understanding these concepts is crucial for property owners to navigate LPT regulations, assess exemptions, and fulfill their obligations.
