The revaluation date for Local Property Tax (LPT) is 1 November 2019.
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 LPT
- 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.
What questions do you have?
We are happy to help. Please post your comment below or contact Gerry Higgins, Tax Partner on 01 677 9000 or by email: email@example.com.
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Posted on June 12, 2018 by Gerry Higgins