LPT: Local Auth. Shared Ownership. How much will occupier/joint owner be liable for?

[Determined]

Does anyone know how this tax will work with houses under shared ownership?

Under the household charge, there is exemption but not sure with the tax.

I sure as hell won't pay the councils half!

 

[jackswift]

Half and half
http://www.*****************.com/local-property-tax-exemptions.html

 

[vandriver]

Where does this link mention 50/50?
... Shared Ownership : Houses bought under a shared ownership with the local authority were not liable for the household charge –but they will be liable for the Local Property Tax. In joint / shared ownership situations, the owners are held jointly and severally liable. This means that Revenue will pursue payment of the property tax against both parties as if they were jointly liable and it becomes the responsibility of the owners to sort out their respective proportions of liability and payment. Only one party can complete the Property Tax return as the liable person. Update – Feb 13th 2013 - All local authority homes will be automatically placed in the lowest valuation band .

 

[Determined]

I received my letter like a lot of my neighbours but unlike them mine had no amount stated on it whereas my neighbours had valuations. I can't believe this hasn't been addressed, we didn't have to pay the household charge and I sure as hell don't intend to pay the full whack on this. Technically the council own half of the house.

 

[ajapale]

Thanks sahd,

Local Property Tax Parliamentary Questions Week Ending 31 March

98. Deputy Catherine Murphy asked the Minister for Finance if he will explain his decision in making a local authority shared ownership homeowner liable for the full cost of the property tax when they are paying a rental price on 50% of the home to local authorities and repaying a mortgage only on the other 50% to purchase that equity share in their home; and if he will make a statement on the matter. [15384/13]

Minister for Finance (Deputy Michael Noonan): The Finance (Local Property Tax) Act 2012 (as amended) sets out how the tax is to be administered and provides that a liability for Local Property Tax (LPT) will arise where a person owns a residential property on the liability date which will be 1 May 2013 for the year 2013 and for subsequent years 1 November in the preceding year.

Section 7 of the 2012 Act provides that local authorities will be liable to pay the LPT on their properties in the same way as any other residential property owner, unless the properties in question are used to accommodate people with special housing needs such as the elderly or people with disabilities.

I am advised by the Revenue Commissioners that residential properties purchased under the various local authority shared ownership schemes will also be subject to LPT and that the liable person in these instances will be the purchaser.

This is on the basis that under these schemes, the purchaser acquires a leasehold interest in the property for a period that exceeds 20 years. Such a purchaser is in the same position as a property owner who purchases a residential property with a mortgage from a financial institution. Accordingly, there is no reason why such an individual should not be liable for payment of the LPT on the property.

As in the case of any other liable person, the LPT is based on the "chargeable value" of the property, which is the price which the unencumbered fee simple of the property might reasonably be expected to fetch on a sale in the open market were that property to be sold on the valuation date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the property.

 

[ajapale]

Because as Brendan points out here: How "shared ownership" works , "shared ownership" is a misnomer. A misnomer that leads to much confusion and disinformation but nevertheless a misnomer that does not cut any ice with revenue or the minister!

The terms "shared ownership" and "rent" are misnomers
I have no idea why these contracts are described as "shared ownership". They have none of the features of ownership.
The "Council's share" is actually an ordinary mortgage. Sometimes this is referred to as "rental equity"
The "rent" is actually an ordinary mortgage payment.
Understanding these misnomers is the key to understanding how "shared ownership" works

Much of the public commentary on Shared Ownership is wrong as a result of these misnomers
I have looked at posts over the years on askboutmoney and other websites, and they almost all misunderstand how it works. I have looked at the guides from the county councils and they often contain errors. People report having been given misleading and inconsistent information from their council and I fully understand why this is.