Exemptions for LPT

Catman

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If a house us exempt from the lpt due to the owner being in a hospital /nursing home, does that exemption continue after they die? Rev unclear on this. If person themselves moves back in then apparently it's ok, but unclear what happens when they die. Although the faq says exemption continues even if property passes under inheritance. But! If inheritee uses the property themselves or sells it, surely exemption no longer applies?!? Surely must be a good few cases like this with ill people who then pass away.
 
If a house us exempt from the lpt due to the owner being in a hospital /nursing home, does that exemption continue after they die? Rev unclear on this. If person themselves moves back in then apparently it's ok, but unclear what happens when they die. Although the faq says exemption continues even if property passes under inheritance. But! If inheritee uses the property themselves or sells it, surely exemption no longer applies?!? Surely must be a good few cases like this with ill people who then pass away.

Can you post a link to this pls.

The exemption applies to the property on foot of certain conditions of the owner(s) so am a bit puzzled.
Thanks
 
I'm a new poster so I don't think I can post links but here:
From the Exemption page on Rev website :
In most cases a residential property that was exempt from LPT on 1 May 2013 continues to be exempt until the end of the current valuation period (31 October 2016), even where the property is sold or ownership is transferred by way of gift or an inheritance.

And here from exemptions faq page:
3. How long does the exemption last?

In most cases a residential property that was exempt from LPT on 1 May 2013 continues to be exempt until the end of the current valuation period (31 October 2016), even where the property is sold or ownership is transferred by way of gift or an inheritance.

There is one exception to this rule:

  • Properties purchased between 1 January 2013 and 31 December 2013 will be exempt until the end of 2016 if used as the person’s sole or main residence. However, if the owner sells the property or if it ceases to be his/her main residence, the exemption ends with effect from the next liability date (1 November each year), that is, LPT will be due on the property from the next liability date.


The last bullet point makes no sense because the whole point of the Nursing home exemption is that the person isn't living there so of coure it's not there main residence? Are they trying to say that it ceases the year of death, or the year after or neither of these things?

Thanks
 
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There was an error in the drafting of the legislation. From memory, and subject to correction, it was intended that if you bought a new house(?) (ftb?) between 1.1. and 31.12. 13 that the exemption continued to 13.10.2016. Because of the error, everyone who bought a house in that period got the exemption but to be lost in the circumstances outlined.

I've had a number of unusual, don't quite fit, sets of circumstances ( all on sales and purchases of property) and , anecdotally, my view is that Revenue are being quite lenient on LPT in most circumstances - allowing special clearance at much lower valuations than sale prices and allowing exemptions to continue in situations where it is less than obvious that that should happen. IMO, the main drive to date, by Revenue, has been to gather, country wide, the database of property owners, lost when residential domestic rates were abolished.

Every time there is a sale of a property, the LPT situation is relevant and Revenue have tied in the LPT property ID number to the (almost mandatory) payment of stamp duty - which requires disclosure of both sides PPS numbers.

2016 will be very interesting in LPT terms, especially in Dublin where sales prices in most circumstances exceed LPT valuation. The self assessment situation will, I think, see Revenue taking whole swathes of an estate, for example, and checking out the self assessed value of each owner as against others in the estate and published sale prices.

mf
 
If a house us exempt from the lpt due to the owner being in a hospital /nursing home, does that exemption continue after they die? Rev unclear on this. If person themselves moves back in then apparently it's ok, but unclear what happens when they die. Although the faq says exemption continues even if property passes under inheritance. But! If inheritee uses the property themselves or sells it, surely exemption no longer applies?!? Surely must be a good few cases like this with ill people who then pass away.

According to the Finance (Local Property Tax) Act 2012, s 5, the exemption for people with a long term mental or physical infirmity does not apply where the property is occupied by another person.

Revenue interprets “occupy” as including a right to occupy.

See this, Open section 5 (Long Term Mental or Physical Infirmity), and see 3.3 and example 3.3.3.
 
Okay, but it says that spouse etc can live there notwithstanding the exemption. ..or am I reading it wrong?

It won't let me quote but basically paragraph 3.3 Vacant Property on that link you sent.
 
Okay, but it says that spouse etc can live there notwithstanding the exemption. ..or am I reading it wrong?

It won't let me quote but basically paragraph 3.3 Vacant Property on that link you sent.

"3.3 Vacant property
Section 5 of the Finance (Local Property Tax) Act 2012 (as amended) contains a proviso that a property must remain vacant and must not be occupied by any person other than the infirm person during the period for which the exemption applies.

However, because the general rule described in section 4 of Instruction 2.1 is not disapplied, where a property is exempt on the first liability date of a 3-year valuation period, it remains exempt until the first liability date of the following valuation period. Therefore, where a property is not occupied on 1 May 2013 by any other person such as the infirm person’s spouse, a family member or an unrelated tenant, it is exempt until the following valuation date of 1 November 2016. However, occupation is not simply a question of being physically present in the property but of having the right to occupy coupled with actual occupation.

Therefore, it is not sufficient that the property be vacant on 1 May 2013 where there is a person who habitually occupies the property but is not in occupation on that particular date."
 
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Just wondering what is the current position for Houses in Shared Ownership: I understand they are NOT exempt but is it being collected?
 
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