Local property tax penalties

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pat12345678

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Hello. Question , my parents house was never registered for local property tax. When the property will be inherited by a child what will happen with this ? Were houses automatically registered or did a person have to register ? Will it show up when the house is transferred? And if so I see there is a 8% interest per year and additional penalties, what are the additional penalties?
Many thanks.
 
pat12345678 said:
my parents house was never registered for local property tax.
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Why not? When did they acquire it? Why hasn't the LPT registration and payment issue been rectified/regularised since?
pat12345678 said:
When the property will be inherited by a child what will happen with this ?
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pat12345678 said:
Will it show up when the house is transferred?
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Almost certainly yes as part of the conveyancing process.
pat12345678 said:
Were houses automatically registered or did a person have to register ?
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Houses which changed hands and on which stamp duty was paid since the introduction of LPT were registered automtically as far as I know. Other properties required the owners to register them. Almost certainly Revenue wrote to them to remind them of this responsibility.
pat12345678 said:
And if so I see there is a 8% interest per year and additional penalties, what are the additional penalties?
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Interest is the only penalty.

What happens if you do not comply

This page identifies the different enforcement and collection options available to Revenue if you do not pay your LPT
www.revenue.ie www.revenue.ie
Note this:
Where LPT (including any interest) remains unpaid, it becomes a charge on the property.
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ClubMan said:
Why not? When did they acquire it? Why hasn't the LPT registration and payment issue been rectified/regularised since?


Almost certainly yes as part of the conveyancing process.

Houses which changed hands and on which stamp duty was paid since the introduction of LPT were registered automtically as far as I know. Other properties required the owners to register them. Almost certainly Revenue wrote to them to remind them of this responsibility.

Interest is the only penalty.

Note this:
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thanks for your reply. I don’t know why it was never registered to be honest

So say for example the property tax is €450 a year plus 8%

So 10 years would be 4500 plus 8 % €360 so bill is €4860. Is that correct ?
By charge you mean - above must be paid before change of ownership?

Many thanks.
 
pat12345678 said:
thanks for your reply. I don’t know why it was never registered to be honest

So say for example the property tax is €450 a year plus 8%

So 10 years would be 4500 plus 8 % €360 so bill is €4860. Is that correct ?
By charge you mean - above must be paid before change of ownership?

Many thanks.
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Year 1: €800 (€450 plus €350 interest (8% x 10 years))
Year 2: €765 (€450 plus €315 interest (8% x 9 years))
Year 3: €730 (€450 plus €280 interest (8% x 8 years))
Year 4: €695 (€450 plus €245 interest (8% x 7 years))
Year 5: €660 (€450 plus €210 interest (8% x 6 years))
Year 6: €625 (€450 plus €175 interest (8% x 5 years))
Year 7: €590 (€450 plus €140 interest (8% x 4 years))
Year 8: €555 (€450 plus €105 interest (8% x 3 years))
Year 9: €520 (€450 plus €70 interest (8% x 2 years))
Year 10: €485 (€450 plus €35 interest (8% x 1 year))

Total LPT €4,500
Total interest €1,925
Total due €6,425
 
Oh did I calculate it in correct. ? What about the household charge ? I don’t think they paid this either. Can someone explain what could be owed in this ? When did it come into effect & rates / penalty?

Navy thanks
 
@torblednam has outlined the calculations for the LPT appears and interest above.

The Household Charge is explained here:

Household Charge (HHC)

This page has information on the Household Charge (HHC)
www.revenue.ie www.revenue.ie
I don't think that any interest or penalties apply to it. If it was never paid then I think that it's just the original €200 that remains payable.

If the property is registered on the LPT system then all arrears and charges should be listed automatically. Since the tax is going to have to be paid eventually it would make sense to do this and to ideally clear any arrears sooner rather than later in order to stop interest charges racking up.

Edit: sorry - this is relevant to the Household Charge and it may mean that LPT interest applies as it does to LPT arrears:
From 1 July 2013, any outstanding HHC liability was increased to €200 and was payable to Revenue. This included any late penalties. In July 2013, arrears of HHC were converted to Local Property Tax (LPT). Revenue collects HHC arrears in the same way as LPT.
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ClubMan said:
The Household Charge is explained here:

I don't think that any interest or penalties apply to it. If it was never paid then I think that it's just the original €200 that remains payable.

If the property is registered on the LPT system then all arrears and charges should be listed automatically. Since the tax is going to have to be paid eventually it would make sense to do this and to ideally clear any arrears sooner rather than later in order to stop interest charges racking up.

Edit: sorry - this is relevant to the Household Charge and it may mean that LPT interest applies as it does to LPT arrears:
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Could anyone work out for me what is owed to date , the house is valued around 280 - 300000 & is based in cork county.
What’s owed for LPT & household charge with fees & charges.

Thanks again
 
Just a quick hijack. Genuinely was oblivious until recently about LPT for my new build. I moved into the house December 2022, am i now liable for LPT for years 2023/2024/2025? Tried registering on revenue but keep getting error after filling in my details. I will have to ring them i think.
 
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confused87 said:
I will have to ring them i think.
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Probably the best option. I found it easy to get through to them and found them very helpful last year when I had to deal with 10 years of outstanding LPT on a property and some mistakes on the LPT account.
 
Hi,

was in the same boat.
uncle never paid LPT on his house I inherited.
I contacted revenue to get a unique property ID.

when I went logged into LPT online, the penalties and are already calculated (back to 2013!)

Br
 
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