LPT - solicitor overvalued house

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Lamps

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I bought my house in mid 2014. My solicitor said I had to pay half the property tax for 2014, which was grand and it had to be paid to her before I got the keys. So that was all paid and she sorted it out.

A few months later I checked and noticed the property tax band I had paid in was for the value of the house in mid 2014 and not in 2013, which put it into the next value band.

So i sent Revenue some print outs from the PPR of neighbouring houses sale prices in 2013 and proved that I should be in the 200 -250k price bracket rather than the 250-300k price band and they wrote back and pretty much said tough luck. I forgot about it but I just got this years LPT bill and Im still in the higher band and this has annoyed me. I should be paying the tax based on the value of my house in 2013 not 2014

Should I just drop does or should revenue change it for me? I pay enough tax as it is!
 
What band was the house in prior to you buying it? The original band in other words. The price you paid for the house in 2014 is not relevant but your solicitor may have been saving you from revenue coming back at you if your solicitor felt it had been originally in an incorrect band.

Can you type the wording of revenues rejection please.
 
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I cant find the letter from Revenue, but as I said it just said theres nothing that they can do. No legislation or reason was given. Think I may try send them another letter as I find it hard to believe they cant change my tax band and it is incorrect charging me at the higher rate.
 
Solicitor overvalued house.

Really?

Can OP start all over again as per Bronte's post?

If I was a mind reader, I suspect that what OP is saying is:

I paid more for my house in 2014 than the house was worth in 2013 when the LPT valuation was set.

I want to go back to the 2013 valuation

The problem is that at the time of purchase OP accepted the higher valuation

See faqs on the LPT website and this in particular:

1.4 After completion of the sale: If I decide that the valuation declared by the vendor was too high, what should I do?

You should submit your own estimate of the market value of the property that would have applied at 1 May 2013 in writing to the Revenue Commissioners, LPT Branch, P.O. Box 1, Limerick as soon as possible after the sale. The following details should be provided:

  • Name and PPSN of purchaser (new liable person)
  • Property ID
  • Property address
  • Purchaser'’s estimate of the chargeable value of the property that would have applied at 1 May 2013 (property valuation band or valuation if value greater than €1m).
  • You are also required to provide the relevant supporting documentation. Any of the following types of supporting documentation can be submitted to Revenue:
    • A copy of a professional valuation as at 1st May 2013 (if one is available).
    • Documented information on property sales for comparable properties in the local area around 1st May 2013 e.g. from the Residential Property Price Register (www.propertypriceregister.ie[broken link removed])
    • Documented information on any house prices survey in the area reflecting values around 1st May 2013.
    • Details of advertised house prices for comparable properties in the area around 1st May 2013 e.g. fromwww.daft.ie[broken link removed] or www.myhome.ie[broken link removed]
mf
 
Lamps said:
I cant find the letter from Revenue, but as I said it just said theres nothing that they can do. No legislation or reason was given. Think I may try send them another letter as I find it hard to believe they cant change my tax band and it is incorrect charging me at the higher rate.
Click to expand...

What do you mean you can't find the letter? How on earth then are we to know what was in their rejection letter to figure out what is your actual issue. How can you reply to them if you don't know what they wrote.

I note you didn't reply to my queries.
 
mf1 said:
See faqs on the LPT website and this in particular:

1.4 After completion of the sale: If I decide that the valuation declared by the vendor was too high, what should I do?

You should submit your own estimate of the market value of the property that would have applied at 1 May 2013 in writing to the Revenue Commissioners, LPT Branch, P.O. Box 1, Limerick as soon as possible after the sale. The following details should be provided:

  • Name and PPSN of purchaser (new liable person)
  • Property ID
  • Property address
  • Purchaser'’s estimate of the chargeable value of the property that would have applied at 1 May 2013 (property valuation band or valuation if value greater than €1m).
  • You are also required to provide the relevant supporting documentation. Any of the following types of supporting documentation can be submitted to Revenue:
    • A copy of a professional valuation as at 1st May 2013 (if one is available).
    • Documented information on property sales for comparable properties in the local area around 1st May 2013 e.g. from the Residential Property Price Register (www.propertypriceregister.ie[broken link removed])
    • Documented information on any house prices survey in the area reflecting values around 1st May 2013.
    • Details of advertised house prices for comparable properties in the area around 1st May 2013 e.g. fromwww.daft.ie[broken link removed] or www.myhome.ie[broken link removed]
mf
Click to expand...

That's funny. Exactly what I said way back when on how to figure out values, in particular daft and the property price register.

There could be a problem in the future if revenue got thick coz in the future one doesn't have the daft records, but even if it all goes pear shaped revenue have their own stamp duty and CGT returns on sales to go on.
 
Lamps said:
I bought my house in mid 2014. My solicitor said I had to pay half the property tax for 2014, which was grand and it had to be paid to her before I got the keys. So that was all paid and she sorted it out
Click to expand...


I don't get this, I purchased at a similiar time frame and my solicitor had nothing to do with the property tax. I think maybe it was because I purchased after a certain time in the year in my case it was Aug 2014 and the previous owner was liable for the whole year. Still I didn't think it was the solicitors job to chase you for this payment or to put a value on the house.
When selling a house the solicitor must check that all taxes have been paid.
 
There are various taxes to be accounted for when dealing with property transactions e.g. NPPR, Household Charge, and LPT - all of which are potentially a charge on a property being sold, rendering a purchaser potentially liable. It is the solicitor's function to assess the situation and make sure any liabilities are discharged/apportioned.

On LPT, there are all kinds of problems likely when buying. The most likely is a complete dis-connect between the valuation for LPT and the sale price. There is a very complicated set of guidelines from Revenue on what purchasers and vendors should do - see this link -

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

In terms of splitting the liability between vendor and purchaser, it is usual to put a condition in the Contract, that the LPT be apportioned on a fractional basis between the parties. Some vendors, especially if they are getting a great price, don't bother with apportionment and pay it as a "luck penny". Stamping the transfer deed, ( with the necessary inputting of both parties' PPS numbers) triggers a notification with Revenue that property has changed hands and that a new purchaser has the liability.

In practice, I am asking vendors in situations where there is a big gap between sale price and LPT valuation to either up-value or, if they can provide evidence to Revenue that teh valuation was realistic at the time, to seek specific clearance from Revenue that notwithstanding the variation, that the original valuation stands.

mf
 
MF1 will revenue issue a clearance and is this a long drawn out procedure? I imagine with, in particular, Dublin increases, this could be a common problem.
 
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