News

Local Authority Reductions in Property Tax 2015

21 October, 2014

Tax Deductible Items for Landlords

There are many tax deductible items a landlord can claim. Landlords must register with the PRTB to claim mortgage interest as an allowable expense. Landlords can also claim legitimate expenses such as wear and tear on capital items e.g. furniture and the cost for tradespeople to work on the property e.g. painters. Landlords can also claim for items such as property management company fees.

Water charges have been at the centre of the news cycle lately with heated debate, protests and concerned property owners and renters. The good news for 2015 is that 14 local authorities across Ireland voted for a reduction in the property tax, which will be a welcome relief to residential property owners. The 2015 liability date for Local Property Tax (LPT) is November 1st 2014. If you own a residential property on that date, then you will be liable for the Property Tax for all of 2015. 

Local Authority Reductions

In both 2013 and 2014, Local Property Tax for all 26 counties across Ireland were charged at the same levels, based on the valuation band of which their properties fell into. For example, if their valuation band was €250,000 to €300,000 the full rate of property tax was €495, in comparison to a property where the valuation band was €150,000 to €200,000 where the full rate of property tax was €315.

14 councils across Ireland voted and agreed to make cuts to the Local Property Tax for 2015. The overall reduction in Local Property Tax revenue is estimated at €43 million as a result of these combined cuts. If you live in one of the following city or council authority areas, you will benefit from a reduction of between 1.5% to up to a maximum of 15%, depending on where you live. 
 

Image Source: Wikimedia Commons

Local Authorities Making 15% LPT Cuts in 2015:

• Clare County Council
• Dublin City Council
• Dun Laoghaire and Rathdown Council
• Fingal County Council
• South Dublin County Council
• Wicklow County Council

Local Authorities Making 10% LPT Cuts in 2015:

• Cork County Council 
• Cork City Council

Local Authorities Making 7.5% LPT Cuts in 2015:

• Kildare County Council

Local Authorities Making 3% LPT Cuts in 2015:

• Mayo County Council 
• Limerick City and County Council
• Longford County Council
• Westmeath Co Council

Local Authorities Making 1.5% LPT Cuts in 2015:

• Louth County Council

Methods of Payment

Direct Debit and Deductions at Source
More than 620,000 home owners paid the 2014 Local Property Tax by direct debit or by deduction at source and this method of payment will automatically carry over for 2015. So for home owners who selected this method last year, there is no need to complete any forms if they are happy to continue paying by this method. 

Image Source: Wikimedia Commons

Lump Sum Payments
A little over 1 million people in Ireland who paid the Local Property Tax in 2014, did so in a lump sum payment. They did so via their bank account, credit / debit card, cheque, cash or by installments in the Post Office. All of these people, the majority of home owners in Ireland, will need to confirm their chosen method of payment again for 2015 and should receive or have already received a reminder letter from the Office of the Revenue Commissioners asking them to confirm their preferred payment option for 2015.

The deadline for confirmation of a home owners preferred payment method for the Local Property Tax 2015 is November 25th 2014.  How a home owner confirms their chosen payment method will depend on whether they filed a hard copy or filed online last year, as the hard copy method via a paper form will only be available to those who filed that way last year. Everyone else is expected to file online. 

Key 2015 Dates and Deadlines

1. January 7th 2015
   
   This is the key deadline if you choose to pay your Local Property Tax as a lump sum in full by cheque, postal order, cash, credit card or debit card.
2. January 15th 2015
   
   This is the date of the first Local Property Tax monthly direct debit payment if you are choosing to pay this way.
3. March 21st 2015
   
   Single Debit Authority payments will be deducted from bank accounts either on or around this date.