Purchased a house in 2015. What valuation for LPT?

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Butter

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I purchased a house in April 2015. We paid the vendor for the proportion of LPT due for this year.
For 2016 can I pay the same band level as the vendor declared in 2013 or do I have to pay based on the price I paid in April 2015?
 
Thanks for this ^. Good news for me as I was thinking it might be 2015's value that I would be charged on.
 
You were not liable to pay lpt proportion for 2015 as you were not owner on valuation date

But you may have agreed to in your contract
 
We paid the previous owners for April-Dec 2015 and our purchasers paid us for the same period.
I didn't realise that we weren't under an obligation to do so. I think solicitors are coming up with this system & if everyone agrees then it's ok.
Interesting though that it could be considered a choice
 
Butter said:
We paid the previous owners for April-Dec 2015 and our purchasers paid us for the same period.
I didn't realise that we weren't under an obligation to do so. I think solicitors are coming up with this system & if everyone agrees then it's ok.
Interesting though that it could be considered a choice
Click to expand...

I think you'll find that you had no choice but to pay! It would be a bit rich to expect that a Vendor would carry the can for LPT, for the whole year, when you were living in the house!

LPT can be quite complex and , yes, conveyancing solicitors with Law Society guidance, are working through it. Most sales these days will be at a price greater than the declared value for LPT. Revenue have issued these guidelines.

http://www.revenue.ie/en/tax/lpt/sale-transfer-property.html

In practice, if there is a very significant gap between the LPT valuation and the sale price, a purchaser's solicitor will ask that the Vendor seek Revenue Specific Clearance for the valuation or pay up for LPT in the higher bracket.

mf
 
The liable person for lpt is the person who owns the property on the valuation date. This is 1 nov 2015 for the 2016 year.

Just because solicitors choose to provide in the contract that it be apportioned doesn't mean that is the legal position
 
LPT is no different to, for example, commercial rates or management company service charges. Yes, the liable person is the person in situ but, in practice, there will be an apportionment between purchaser and vendor on a sale.

mf
 
I didn't object to paying the portion from April to Dec. especially as everyone in the chain did the same.
It might be different if one person decided to object as they were not the owner at the chargeable date. The same happened for management fees.

I also had to write to Revenue seeking clearance as the general clearance did not cover the increase in house prices in the area. It was a simple process where I referenced the PPR, myhome & some press articles & I got clearance confirmed in writing in a week.

The vendors valuation looked right for 2013 - or perhaps they paid up the LPT to the more accurate band prior to sale. Either way I'm glad I'm not paying 2015's valuation band.

What would happen if one person in a chain refused to pay their vendor for LPT already paid by the vendor? Does this happen in practice?
 
"What would happen if one person in a chain refused to pay their vendor for LPT already paid by the vendor? Does this happen in practice?"

I'm not seeing it in practice but it could happen. You just need one awkward beggar to stick to the letter of the law and try and stiff someone. These are the people who treat every transaction as a form of blood sport!

Sometimes, you just go with it, let them have their way, causing grief to everyone and especially if it is only 2-300 euro. But someone picks up the cost.

mf
 
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