LPT: Rates Announced 0.18% up to €1m ; .25% above €1m.

Brendan Burgess

Founder
Messages
54,216
.18 on first €1m
.25% on balance


1 July 2013 for second half of the year

Accepts most of the recommendations of Expert Group

Main features

Collected by Revenue
Owners or properties
Market value as assessed by owners (REvenue to provide guidance)

initial value up to 2016
 
Voluntary deferral With income less €15k single and €25k couple

( after 80% of mortgage interest)
 
The value that the tax is based on will be the centre point of a 50,000 band:

For example, if the value of the house falls between 150,000 and 200,000 euro, the tax will be 0.18% of 175,000

This applies up to 1m euro. Properties over 1m are charged 0.18% up to 1m, and 0.25% over that, to the exact value of the property.

Properties with a value of 100,000 or less will pay tax based on a value of 50,000
 
Local Authorities and Housing Associations must pay the LPT. This is a change from the HC where they were exempt.
 
Can somebody clarify something for me please?

We were told that the rate in 2013 would be 50% of the final rate.

In 2013 will the rate be .18% and in 2014 .36%?

I'm getting confused by the July implementation.

Are they implementing a .18% rate for 2013, but it doesn't need to be paid until July?
or, are they implementing a .18% rate for 2013, but because of the 50% implementation we will only have to pay .09%?

If I state my house is worth 175k, will I be paying EUR 157.50, EUR315 or EUR630 in 2013?
And same Q for 2014.

Thanks.
 
The rate is 0.18%.

If your house is worth 175k, then 0.18% * 175k = 315 pa.

So you owe half that in 2013.

In 2014, you will owe the full 315.
 
gipimann said:
The value that the tax is based on will be the centre point of a 50,000 band
Click to expand...

Am I correct in assuming that a house valued at €195,000 will pay that same amount as a house valued at €155,000? And that amount is €315 per annum (€157 in 2013)?
 
yes, but nobody is going to value their house at 155k when ,at 150k they pay only €112.

I imagine that everyone will be valuing their house at a few euros under each threshold. Talking with neighbours essential !
 
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