LPT: Derelict exemption while renovating?

T

tickity

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We bought a run down house in Dec 2012 for 170K. It has no electricity or running water. There is a a hole in the roof. it is pretty much uninhabitable.

We could make a valid case for LPT exemption as it is uninhabitable so initially pay nothing. However Its my feeling that if we renovate later this year we then need to declare the price when we move in and then pay LPT? Correct? It will probably be 300K then.

Would I be better declaring the house for LPT now? I would assume I could assess its value based on the market value of 170K (what we paid)? Then the LPT would be held for 3 years I believe. This would be a big difference of LPT on 170K (for 3 years) Vs LPT on 300K (for 2 and 1/2 years).

Financially its a no brainer to pin the valuation now but can I do this? I have recieved no correspondance probably because it is not known that I own the house
 
sahd said:
Are the electricity and water just turned off? Is there a supply of water and electricity to the house? How big is the hole in the roof?
170k for an uninhabitable house sounds a lot to me .
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There is no electricity at all. May need to lay a new esb line. Meter box vandalized and no meter anymore. Wiring gone. Hole in roof is actually hole in roof windows large 4meters square. Its boarded up and full of junk, graffiti, everything taken or smashed. Not sure about water supply but no running water.

170K is what I paid based on location, size, detached, site size, potential etc...
 
From your description/clarification of the state of the property it is not in a habitable condition by a long shot and if in that condition on 1st May will not be liable for LPT.
 
Thanks Dermot, But my more pertinent question is should pay anyway from 1st May to avail of the 3 year frozen rate at its current value of 170K?
 
tickity. The liability date for whether the property will be subject to LPT in 2014 is 1st November 2013. Will the property be habitable and finished by then if not you can do the calculations.
You will need to register and state why your claiming the exemption in writing by the 7th May or online by the 28th May.
Have you got correspondence from revenue about it
 
Dermot. Id say we will have it finished by 1st November but I'm not sure yet.

I haven't received any correspondence from revenue however Id say they don't have me registered or even know I own it yet.

Is it valid to do a valuation now based solely on the price I paid for it?
 
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