LPT: what happens if we pay too much, or too little?

S

Silica

Registered User
Messages
60
I'm wondering, what happens if we pay too much, or too little LPT?

Say, we (cautiously) pay too much LPT (over-estimate the value of the house) can we claim that over-payment back later when we sell the house for less than we thought it was worth?

Or, conversely, if we pay too little, will Revenue come after us when we sell the house for more than we valued it at?

Put another way: what's the incentive to get our valuation right? (And sorry if this was answered elsewhere, but I can't find an answer to this question anywhere, here or on Revenue)

Thanks.
 
I would imagine if you over value, then nobody is going to point that out to you. If you under value, revenue have the right to audit your LPT return and valuation.
 
But if revenue has a right to come after us for underpayment, should we not have the right to claim a refund if it turns out we over valued the house??
 
I don't have an answer for that - perhaps someone else here is better positioned to clarify? However, I would imagine that it's your valuation so I doubt you can blame Revenue for that.

Correct me if I'm wrong but I'd imagine you're trying to work out what valuation to put down on the form but worried that what you put down might be open to a challenge from Revenue?

Check asking prices and the property price register. I know that it can be more difficult in some cases and easier in others to determine. In my own case, it's clearcut - have property price register example of exactly the same house type that sold 6 months ago. Tried to work it out for my parents house - but that was a lot more wishy washy - as it's pretty unique. However, checked daft for asking prices of what seem like similar properties in similar areas. A bit of a variance but enough info to put in a reasonable valuation - which I doubt very much they will challenge.

What would your price expectation be if you were to put the house on the market in the morning?
 
Thanks -- that's an interesting take: that any over payment is our problem, as it's self assessed.

Yes, we're having trouble guestimating a value, as it's a pretty unique property: inner city (Dublin), but very big -- which could be an asset... or make it slow to sell. We feel it should be more than the average for the street, but obvs don't want to pay too much tax if there is no need.
 
And do remember that your guestimate remains till 2016. How much would you sell for if a quick sale was necessary. Are the houses in your area likely to go up or down or even selling at all. We also live in a different to most of the others in the area but if we needed to sell there appears to be a ceiling for the area so we have left the band as it is.

Have you a crystal ball 'cos I could do with a loan of it.
 
After all the posts am still confused as regards valuation and payment. If I have 2 houses one has a market value of say 120k and the other 149k. Do I apply the 0.18% to the two values or do I just pay the mid value of the bands ie €225 on each property
 
They both come in to the same category 100,000 - 150,000.

LPT due for 2013 =112 each, and 225 each from 2014 onwards.
 
You must log in or register to reply here.
Back
Top