Local Property Tax for Pre 63 House

K

Kevin198823

Registered User
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3
Hi,
I have a pre 63 property with 9 individual units. Since the Local Property Tax came in I have paid the LPT on the house itself approx. €900 and not the individual units. I have since learned that I should have paid the property tax on each individual unit approx. €100 per unit. I plan to selling the house in 5 -10 years time and I have heard that when I sell the property I must pay all the back tax for the previous 11 years for each unit (11 years x 9 units x €100 = €9,900). I am wondering will the cost of taxing the full house be deducted from this and will there be penalties/ interest added. It seems that if I have paid for the full house and now each individual unit I will have paid double tax.
Also what is best way I can go about rectifying the problem. Do I get in touch with the revenue and now declare each unit, then try to register each unit for the 11 previous years. I am hoping I can pay €1,000 of each year instead of the €9,900 in one go. Any advice will be appreciated. Thanks
 
Did you have any exemptions any of the years? I know we had one for years due to the timing of when we bought our house.
 
Did you receive proof when buying the house that it was subdivided into 9 units before the '63 act came into force? (Eg declarations)
 
Kevin198823 said:
Yes I have the declaration that the house was subdivided before 1963
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If the declarations confirm subdivision into 9 units, then you can use this to explain the situation to Revenue.

Some declarations say 'multiple units' which would be less helpful for you (btw councils read 'multiple' as being '2' units).

Worth getting legal advice before anything else.
 
Kevin198823 said:
Hi,
I have a pre 63 property with 9 individual units. Since the Local Property Tax came in I have paid the LPT on the house itself approx. €900 and not the individual units. I have since learned that I should have paid the property tax on each individual unit approx. €100 per unit. I plan to selling the house in 5 -10 years time and I have heard that when I sell the property I must pay all the back tax for the previous 11 years for each unit (11 years x 9 units x €100 = €9,900). I am wondering will the cost of taxing the full house be deducted from this and will there be penalties/ interest added. It seems that if I have paid for the full house and now each individual unit I will have paid double tax.
Also what is best way I can go about rectifying the problem. Do I get in touch with the revenue and now declare each unit, then try to register each unit for the 11 previous years. I am hoping I can pay €1,000 of each year instead of the €9,900 in one go. Any advice will be appreciated. Thanks
Click to expand...
No you don't need to pay LPT per unit for the first era of LPT, but you do for the new period. 2nd period.

This happened to me last year, when I was selling and I had to sort it out. See my previous threads on it. All situations are different. It took me quite a whole to sort it out with revenue. Which I did via the LPT portal online. Mine was one property, one title, one front door, pre 63 converted into flats property. Revenue changed the rules on this but have not informed anybody.

Pre 63 doesn't affect anything btw.

For expensive Dublin properties it can work out cheaper per flat.

Clearly if you paid for the one property, this will come into the calculation of per unit cost.

Out of interest, how did you find out about the per unit rule?
 
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