Correcting an LPT return

[Brendan Burgess]

When you log onto the LPT website, it tells you

Step 1
Return has been submitted
View Return
Correct Return

If you click on Correct Return, you get

You have previously submitted a LPT return for this period - do you wish to amend the details?

You may only increase the declared value of your property on-line. Please also note that you are only permitted to correct your LPT return once online.

To make further corrections, you will need to contact Revenue directly. The self-correction must be made by 27 November 2013.

 

[Palerider]

Very helpful, I have mailed the info email address at Lpt revenue three times over the past month with no response.

 

[RedDevil]

Correcting Return by 31st March 2014

The above as Brendan outlined is same as option now available.
I paid amount suggested in origional demand
Have now learned that at least three neighbours paid for a higher band
Have looked at Property Prices Register for Jan/May 2013
Will now move to same higher band and use actual prices paid in locality if ever an issue.
Mind you Revenue might not be bothered?

 

[haventaclue]

We are in a situation where we paid higher than most of our neighbours based on our house being larger as no idea what property value was as no houses have ever sold on our road for over 10 years. It now looks like we will have to up it again as the first ever house is on market. Am sure revenue would use the price house sells at as a benchmark if they were to start querying everyone's returns so perhaps better safe than sorry and amend now?

 

[STEINER]

The above as Brendan outlined is same as option now available.
I paid amount suggested in origional demand
Have now learned that at least three neighbours paid for a higher band
Have looked at Property Prices Register for Jan/May 2013
Will now move to same higher band and use actual prices paid in locality if ever an issue.
Mind you Revenue might not be bothered?

I attended a taxation update course during the week where the LPT was one of the topics. The presenter made a few points on the whole valuation side of the LPT.

- the original Revenue estimate is not a defence if your property is undervalued for LPT. The onus is on you alone to give a reasonable valuation for your LPT (self-assessment).

- You valued your property on 1st May 2013 for LPT and this lasts for 3 years. If Revenue were to query your valuation you just need to reference actual sales for similar properties before this date and/or just be able to justify your valuation. The Revenue are only interested in gross undervaluations. From their viewpoint, overvaluations are great as they get more LPT. If property prices increased from last summer it doesn't mean that you undervalued your property and underpaid LPT. So, don't self-correct unless you really did undervalue on 1st May 2013, irrespective of your neighbours' valuations.

- if you are likely to sell in the near future, a buyer has access to the LPT valuation figure. So, if you are asking for €350k and you have it valued for LPT AT €250K, the buyer will ask you to come down on your price.

 

[Annie51]

We paid LPT on a property we have renting out putting the value at just under €150,000 in 2013. At the time we did not think we would even get that for it if sold. It is a house in the country and there wasn't any houses being sold early last year in that area. We decided at Christmas to put it on the market, just to test it, and we received an offer of €185,000 which we have accepted. Do we need to go back and amend the value for the LPT?

 

[ajapale]

We paid LPT on a property we have renting out putting the value at just under €150,000 in 2013.

If just under €150,000 was a reasonable valuation on May 1st 2013 based on all the information you had to hand then happens later has no impact on your LPT valuation which is good for 3 years.

Steiner puts it very well here:

If property prices increased from last summer it doesn't mean that you undervalued your property and underpaid LPT. So, don't self-correct unless you really did undervalue on 1st May 2013, irrespective of your neighbours' valuations.

 

[Woodville56]

Correcting LPT Return - Executor to estate

I would welcome views/advice on the following scenario.
I'm currently acting as the executor in the estate of a deceased relative. I filed with Revenue for Deferred Payment of LPT on the property pending Probate etc . I valued the property at the indicative sale price in the area (early 2013) and filed under the appropriate band for LPT.
For Probate purposes, I got 2 independant valuations of the property (December'13). The valuations now received place the property in the next valuation band up for LPT purposes.
My query is - should I now correct the LPT Return to reflect the Estate Agent Valuation of the property or leave as per original return ??
There was no additional 'value added' work done to the property in the interval between my original property 'market based' DAFT valuation and the EA valuation at end of year. It just appears that the rising market prices have lifted the value of the property into the next tax band !
However, given that I now have an Estate Agent valuation and wanting to be LPT tax compliant in the matter, would I be best advised to re value the property to the next band up as reflective of the valuation report?
It is intended to retain the house for family and will not therefore be selling on. As executor, I would like to ensure compliance with LPT requirements so as to avoid any hassle at a later date, having deferred payment until probate sorted etc..
Any advice would be welcome !

 

[T McGibney]

I valued the property at the indicative sale price in the area (early 2013) and filed under the appropriate band for LPT.

I think you've answered your own question.

 

[Bronte]

- the original Revenue estimate is not a defence if your property is undervalued for LPT. The onus is on you alone to give a reasonable valuation for your LPT (self-assessment).

Well then they probably shouldn't have given indicative values then as what was the point.

 

[emser]

There are detailed guidelines regarding "clearance" for the sale of a property on the Revenue website. In short, General Clearance applies to sales where the price has not risen too much - for the first few bands the clearance limit is anywhere within the next band and for higher bands the limit is 15% above the sale price. If the difference exceeds this then there is a further ground based on sale prices in the area at the time but also on the Revenue guide price (so it does give some protection).
After that though if none of the above applies they require a bucketload of documentation to show the values were correct and I have known people to conclude they would be better off to correct the return and pay a bit extra rather than jump through all those hoops.

 

[mandelbrot]

Well then they probably shouldn't have given indicative values then as what was the point.

The point was to tell people an amount that they would have deducted from their salary or social welfare payment, or have proceedings taken against them for, if they didn't actually submit a self-assessment return.