LPT value a lot lower than sale agreed price

Sanparom

Frequent Poster
Messages
130
I have been paying my LPT via salary deduction since 2013. In 2013 my property was worth significantly less than it is now (it has been in Band 2, but is selling in Band 5, which which is a difference of €270 per year). Will I have to pay circa €1900 before I can sell my house even though its value was a lot lower 7 years ago and in many of the years since then too?
 

NoRegretsCoyote

Frequent Poster
Messages
2,009
The upper limit of the band is €150k and sale agreed price is now 83% more.

The maximum allowable margin is 50% outside Dublin, and 80% inside Dublin.

I think you will have to re-declare and pay for each year from 2013 onwards for Band 3 unfortunately. This will get your margin below 50%.

The guidelines are here, best to leave this to your solicitor.
 

Sanparom

Frequent Poster
Messages
130
Yes, I'll leave it to him. It's a terrible shame really, considering the value would have been nowhere near the agreed sale price a few years ago, but sure there you go. Thanks a million for the help.
 

NoRegretsCoyote

Frequent Poster
Messages
2,009
Yes, I'll leave it to him. It's a terrible shame really, considering the value would have been nowhere near the agreed sale price a few years ago, but sure there you go. Thanks a million for the help.
It's swings and roundabouts. You've also benefitted from a big untaxed increase in value in your house:)

When I sold my late father-in-law's house I had to back pay five years of LPT for two bands. I wasn't complaining given how much the house had sold for.
 

Kerry Gooner

Frequent Poster
Messages
53
The only relevant valuation date is 2013, you can still use that amount now irrespective of how much the market value has risen in the mean time.
The next valuation review is scheduled for next November.
 

NoRegretsCoyote

Frequent Poster
Messages
2,009
The only relevant valuation date is 2013, you can still use that amount now irrespective of how much the market value has risen in the mean time.
No you can't.

If the sale price is greater than the 2013 valuation over certain thresholds you have to re-value upwards and pay back for every year.
 

Sarenco

Frequent Poster
Messages
6,534
@Sanparom

I sold a property a few years ago for well above the relevant allowable valuation margin for LPT purposes.

However, I managed to get specific Revenue clearance by producing a sales price for a comparable property from the Property Price Register (PPR) from 2013 that was acceptable to Revenue.

To be honest, I think I was lucky – the comparable property was a receiver sale and had an inferior outlook to my property.

However, it would be well worth your while checking the PPR to see if you can find any comparable properties that sold in 2013 that would help to build a case that the 2013 valuation was actually reasonable, notwithstanding the fact that the sales price in 2020 is above the allowable valuation margin.

It would save you a good few quid.
 

mf1

Frequent Poster
Messages
4,356
Revenue allow general clearance where the sale price is less than €350,000.
See extract from Revenue Guidelines below

4.2.1 General clearance condition 1– sales price does not exceed €350,000
The condition in this section relates to the price for which a property is sold.
Where a property is sold for a price that does not exceed €350,000, general clearance applies. The chargeable value that was declared for the property is not taken into account.

mf
 
Top