Is property tax per unit or per property

[Bronte]

Does the new property tax apply in the same was as the NPPR? Or is it per property rather than per unit?

 

[Fiskar]

It is a charge on each dwelling unit - i.e house, flat, bedsit, apartment. So the owner of a block of 30 apartments will be liable for 3000 a year.

Really the same as NPPR, so in the case above owner is liable for 9,000 per year at the moment

 

[Bronte]

Will this charge be tax deductable, unlike the NPPR?

 

[mandelbrot]

My gut says no. Purely on the basis that it's not "wholly & excusively"... etc (i.e. you'd still have to pay it whether it was a rental property or not), but I haven't seen / heard anything to support that!

Nor am I saying it's right / fair, before someone decides to attack me!

 

[DB74]

AFAIK, the technical/legal reason why NPPR isn't tax-deductible because it's not "levied" by the local authority, even though it is collected by them. The household charge would fall under the same category IMO. The local authority don't decide how much to charge, they are merely facilitating the collection of the money.

Personally speaking, I think it's a disgrace that it's not tax-deductible and it's ripe for a court challenge

 

[T McGibney]

My gut says no. Purely on the basis that it's not "wholly & excusively"... etc (i.e. you'd still have to pay it whether it was a rental property or not), but I haven't seen / heard anything to support that!

Nor am I saying it's right / fair, before someone decides to attack me!

No attacking, but I pointed out previously to you that the "wholly & excusively" argument does not hold in respect of buildings insurance, which is required regardless of whether the property is rented. It is allowable against rental income so the equivalent NPPR charge should also be allowable. If memory serves me correctly (its not that long ago) you conceded the point?

 

[T McGibney]

AFAIK, the technical/legal reason why NPPR isn't tax-deductible because it's not "levied" by the local authority, even though it is collected by them. The household charge would fall under the same category IMO. The local authority don't decide how much to charge, they are merely facilitating the collection of the money.

Its clearly a valid tax-deduction, the problem is that life is too short for me, or any other accountant, tax specialist or taxpayer to go to war with Revenue over it. So its easier to pretend that its not tax deductible, and exclude the deduction from tax returns.

 

[DB74]

Don't shoot the messenger!

 

[mandelbrot]

No attacking, but I pointed out previously to you that the "wholly & excusively" argument does not hold in respect of buildings insurance, which is required regardless of whether the property is rented. It is allowable against rental income so the equivalent NPPR charge should also be allowable. If memory serves me correctly (its not that long ago) you conceded the point?

Ah yes, fair enough, and we won't go there again!

Its clearly a valid tax-deduction, the problem is that life is too short for me, or any other accountant, tax specialist or taxpayer to go to war with Revenue over it. So its easier to pretend that its not tax deductible, and exclude the deduction from tax returns.

I think we agreed to disagree about the NPPR deductibility, but I haven't read, nor do intend to, the fine print in relation to this household charge, as it's only a stopgap.

Action might become worthwhile if / when it becomes the new property tax, and if the charges are as substantial as some people are suggesting. But who knows, common sense might prevail and a tax deduction will be explicitly allowed...