If there is a disparity between the valuation for LPT and the sale price, Revenue have a system of checking whether the disparity is acceptable or not.
See below.
If not, a vendor can either seek Specific Clearance on the disparity - or amend the LPT returns for all years and pay the difference plus interest and penalties.
Everything you need to know:
This page describes what Revenue clearance is for Local Property Tax purposes
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What is Revenue clearance?
You must obtain Revenue clearance on the sale or transfer of a property. Revenue clearance provides confirmation that the property is fully compliant for Local Property Tax (LPT).
There are two types of Revenue clearance:
- general clearance
- and
- specific clearance.
The property does not qualify for either general or specific clearance where:
- there are outstanding or deferred LPT liabilities, or Household Charge (HHC) liabilities
- there are outstanding LPT returns.
The easiest way to check that the property is fully compliant is by logging into
LPT Online to review the LPT records.
General clearance
General clearance means that you do not need to submit an application to Revenue. General clearance applies if either of the conditions outlined below are met.
Condition 1
The sale price is €400,000 or less.
Note
This threshold was increased from €350,000 with effect from 13 November 2023.
Condition 2
Condition 2 is split into parts A and B. Where either part A
or part B is satisfied, general clearance applies.
Condition 2 (A) applies if your property was liable for LPT on 1 May 2013
The sale price does not exceed:
- the upper limit of the valuation band declared as of 1 May 2013 by 125% (or 125% above the actual declared value for properties above Band 19)
- and
- the upper limit of the valuation band declared as of 1 November 2021 by 15% (or 15% above the actual declared value for properties above Band 19).
Condition 2 (B) applies if your property was not liable for LPT on 1 May 2013
The sale price does not exceed 15% of the upper limit of the valuation band declared as of 1 November 2021 (or 15% above the actual declared value for properties above Band 19).
Prior to the sale of the property, you (the seller) can obtain general clearance by accessing the LPT Online Service using:
- your Personal Public Service Number (PPSN)
- the property ID
- and
- the Property Index Number (PIN).
Specific clearance
If you do not meet Condition 1 or Condition 2, you must apply to Revenue for specific clearance. You can apply for specific clearance by completing
Form LPT5. You can submit your form through
MyEnquiries when you log in to the LPT Online Service.
Specific clearance applications are generally processed within 12 working days. Please do not contact Revenue for an update until this time frame has elapsed.