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Irish Local Property Tax

June 2018


PUBLIC CONSULTATION
The Minister for Finance announced a review of LPT IN Spring 2018 to include:

  • Basis for future review as property values change
  • Relationship between property price movements and tax liability
  • How to achieve stability in flow of tax
  • LPT exemptions and deferrals

ISSUES IN RELATION TO LPT

  • Since LPT was introduced in 2013, property values have increased by 75%There is need for more regular reviews of property valuations, tax rates and band structures
  • Should first time buyers in 2013 be still exempt from LP
  • LPT should be a tax deductible expense for landlords
  • The cities (particularly Dublin) and the countryside property valuations
  • Should deduction be permitted for house mortgages

CONCLUSION

The 6 year gap in revaluing property is likely to lead to large increases in LPT. This suggests that valuations and tax rates should be reviewed on a more regular basis.

There is no justification for not allowing LPT as an expense in calculating taxable rental income.