6 March 2013

Brief summary of Local Property Tax, NPPR, Household Charge

We are aware from queries received that some clients are understandably a little confused about the local property tax, household charge and NPPR charge in the current year, so this is a very brief summary.

Household Charge

This tax has been abolished and will not apply for the year 2013

NPPR: 

This has been abolished from next year, but will continue to apply for 2013. The charging date is 31st March, as before (tax payable by 30TH June), and the cost is €200 for every property owned apart from a person’s principal private residence.


Local Property Tax:

The Revenue will write to everyone from the 11th of March  with a form to complete and an explanatory booklet. The form must be returned by 7th May on paper or 28th May electronically (incidentally people with more than one property will have to file and pay online).

  • The tax comes into effect on 1st July but only half of the normal full year charge will apply for 2013.
  • The form will include the Revenue’s estimated valuation of each property, but the tax is self-assessment, you enter your own valuation figure, or rather your figure for the valuation band on their table.  If the return is not sent back to the Revenue their estimate will be taken as the default figure.
  • The 2013 valuation figure will continue to be applied until the next valuation date in 2016.
  • There is no deduction for any mortgage outstanding on the property.
  • The tax is payable on 1st July or can be paid in 6 monthly instalments between July and the end 
  • of the year.
  • If the tax is not paid the Revenue will seek to deduct it from people’s salaries, pensions or Social Welfare payments.
  • There are relatively few exemptions, and there is a deferral alternative for people on low salaries, but the tax deferred attracts interest and becomes a charge on the property, which will have to be paid on its sale.

We shall be happy to help with the form or answer any questions people may have. Please contact us at the website at http://www.nolanassociates.com