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  • Local Property Tax (LPT) – obligations for 2016

    November 23, 2015
    As set out in our Article earlier this month the amount payable for LPT will now be fixed until 2019 which offers some relief for homeowners and investors.

    In addition to this as was the case in 2015 a number of local authorities have used their discretion to reduce the LPT rate. The said reductions have ranged from 1.5% to 15% with all four Dublin county councils agreeing to reductions of 15% as was the case in 2015.

    Payment of LPT
    The deadline for payment of the 2016 LPT liability depends on the payment method utilised. If a property owner paid their LPT for 2015 by lump sum or cash payment and have not yet made arrangements to pay the 2016 charge they need to do so as soon as possible. If a property owner wishes to move to a phased payment option such as Direct Debit, Deduction at Source this should be confirmed to Revenue by 25 November 2015.

    The latest date for discharge of LPT by lump sum or cash payment is the 7th January 2015.

    If a property owner who has opted to pay LPT by way of phased payment, direct debit etc no further action is required and payment will continue automatically via the method of payment selected from January 2016.

    Who is liable to pay LPT for 2016?
    If you are the owner (liable person) of the residential property as at 1 November 2015 you are required to discharge the LPT for 2016. If an owner sells their property after 1 November 2015 they will be liable to pay LPT on the property for 2016, even if it is sold before the end of 2015. This obligation will be tempered however by the insertion of a special condition in the Contract for Sale which will ensure that the LPT liability is apportioned between the Vendor and Purchaser from 1 January 2016 to the completion date.

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