Does LPT have to be based on the selling price?

2Clueless

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I’m currently buying a house that went well over the asking price (tbh, I was surprised the asking price was so low but myself and a neighbour wanted it because of its location) Anyway, looking ahead, I’m wondering do I HAVE to rely on the selling price when paying the LPT?
 

Bronte

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Of course you will have to base it on the price you paid for it. That's it's most recent value. But of course if it drops in value you can use that value, and the opposite if it increases in value.
 

Sarenco

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Of course you will have to base it on the price you paid for it.
That is incorrect.

The current valuation date for LPT is 1 May 2013. That is the date is used to determine the market value of the property and any associated LPT liability.

There is only one valuation date in any valuation period. The current valuation period runs from 1 May 2013 until 31 December 2020.
 

Bronte

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I thought the OP meant when the next time the LPT valuations have to be calculated. Which is next year.
 

Sarenco

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@Bronte

Assuming no further legislative changes, the next LPT valuation date will be 1 November 2020.

Liability would be determined on the basis of the valuation as at that date - not a sales price agreed this year.

It's entirely possible that the value of the property could rise (or fall) materially between now and 1 November 2020.
 

Gordon Gekko

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I’m far from an expert on this, so caveat emptor, but something in the back of my mind is saying that if a property sells for a certain percentage over its current valuation for LPT purposes, that valuation is revised.
 

NoRegretsCoyote

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If you post the LPT valuation band, selling price and location I can work out using CSO house price data if the initial valuation by the vendor was plausible.

If you are not comfortable posting this PM me.
 
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