Irish Local Property Tax
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
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.