On 2 May 2014, the Minister for Finance announced that the scope of two Local Property Tax (LPT) reliefs in relation to residential properties that are occupied by certain disabled and/or incapacitated individuals would be extended with effect from 1 July 2013. The extension is intended to correct anomalies and inequities that had been identified in the operation of the reliefs and, pending the enactment of further legislation, Revenue will operate the new rules on an administrative basis. The two reliefs are:
In the case of the first relief, there will no longer be a requirement for the adaptation work to have been grant-aided by a local authority, provided the other qualifying conditions for this relief are met. In the case of the second relief, there will no longer be a requirement for an award from a Court or the Injuries Board or the establishment of a public trust fund, where the other qualifying conditions for this relief are met. The revised treatment is effective from 1 July 2013 when Local Property Tax became payable. This means that some individuals who have already paid LPT may be eligible for a refund of some, or all, of the tax paid.
In due course, the Minister will introduce legislation to give effect to the revised treatment. In the meantime, Revenue will deal with affected cases on an administrative basis in line with guidelines published on its website. TheseGuidelines on local property tax relief for disabled/incapacitated individuals (PDF, 956KB) can be found in the LPT section on the Revenue website.
The Revenue LPT manuals 02.11 – Permanently and totally incapacitated individuals (PDF, 141KB) and 04.03 – Property adapted for occupation by disabled persons (PDF, 125KB) have been amended to reflect the revised treatment.
This article was written by smithandpearson