LPT valuation band lower than sale price

Whacko

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Can someone please tell me what action needs to be taken when house price is considerably higher than the valuation band. Will revenue charge a penalty or how is it treated. Should the valuation be reviewed each year, even if it was correct when initially made?
 
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You allowed to go over the valuation by 100,000, just make sure you had it in the right band to begin with. Local property tax has remained static since it's inception. It was due for an increase but I read somewhere it's put off until 2022.
 
Yes I think the band chosen in 2013 was correct, but it is difficult to find sale prices online for similar properties in 2013 to validate. The current value is more than 100,000 over the top end of valuation band in 2013.
Where is the 100,000 figure mentioned on revenue?
 
We sold a house recently for €300K more than its property tax value, without any issues, or without having to make any back payments or penalties.

Back in 2013, the band it was put into was on the lower side of reasonable.

The sale contract stated the property had been returned in Band X for the years 2013 to 2017, as the purchase price is not more than 80% higher than the upper limit of the band declared, General Condition 4.2.2 shall apply and no further documentation will be furnished.

This was acceptable to the buyer's solicitor.

From the above it would seem, at the moment anyway, if you are over by 80% or less, regardless of the amount, you should be OK.

I have no idea what General Condition 4.2.2 is or where you would find it.
 
Depending on the area some house prices have risen up to 70% since 2013.

But I had to back pay LPT on my father-in-law's house when we sold it in 2018 as the sale price was >100% more than what he'd valued it for in 2013.

If you tell us what the area is, sale price and valuation price I can let you know if this is likely to be accepted by Revenue by reference to CSO price index.
 
I bought a house two years ago and the sale was delayed slightly because of an LPT issue.
In 2013 when LPT was introduced the house had been declared in band 4, and paid at that rate for five subsequent years. In reality it should have been paid at the band 7 rate. (The vendors had attempted to pull the wool over Revenue’s eyes and thought they’d get away with it).
My solicitor noticed this, raised a flag, and the vendors made the necessary amends and payments.
I would say that many a house was undervalued in LPT band terms back in 2013. You might get away with a discrepancy of one band, but no more.
 
From my reading, and relating to Dublin, if the value has increased by more than 80% then general clearance does not apply. This 80% can be higher if you've had verifiable work done on the property.

I can't find online any new Valuation Date/Year, i.e. when they will be asking owners to update their valuations.

Do we know how it will be treated if houses are valued at > 80% of what they were when the new valuations are sought?
Surely that 80% has to take into account when the next valuation date is? i.e. inflation of 80% between 2013 and 2015 would make it hard to believe, whereas if it was between 2013 and 2021, that would seem more likely to not be taking the piss.
 
Thanks for all your replies. I have read the revenue guidelines referenced by mf1. If I am interpreting them correctly for houses outside of Dublin if the sale price is greater than the top limit of the valuation band plus 50% automatic clearance might not apply.
The valuation band was 100,000 - 150,000 in 2013 and sale price is 260,000.
 
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