Parents haven't paid Property Tax on house in Council Tenant Purchase Scheme

DebiWex

New Member
Messages
4
I hope someone can help here. My parents are in a Tenant Purchase Scheme with the Co Council for their house, and have always thought because the house was 'Rent to Buy' they didn't have to pay property tax until the house is paid for. Recently when applying for a grant for them i was asked for either a receipt or an exemption for Property tax from Revenue, so i contacted Revenue and they said as they were in a Tenant Purchase Scheme they would be exempt but they needed a letter from the Council, so i went back to the Council and asked for a letter and they said they couldn't provide one as my Parents are the official owners of the house and they only have an interest in it until the mortgage is paid for and that my parents would be liable to pay the Property tax not them. I'm afraid now to go any further with this in case they end up with a huge bill for Property tax and they other taxes previous to this. Would anyone have any information, or tell me who to speak to next about this?
 

Saavy99

Frequent Poster
Messages
586
Either way, the property taxes are going to have to be paid at some stage. They can be deferred, however, if they can at all they should look at getting this sorted. How long have they got the house and what was the approximate value of the house back in 2013 when the property tax was first introduced.
 

DebiWex

New Member
Messages
4
Either way, the property taxes are going to have to be paid at some stage. They can be deferred, however, if they can at all they should look at getting this sorted. How long have they got the house and what was the approximate value of the house back in 2013 when the property tax was first introduced.
Thanks for coming back to me, they've been in the house for over 40 years, but the Rent to buy only happened in October 1990 and the house will be paid for in October 2020. As it's a council house I can't imagine it could have been valued at any more than €120000 back in 2013, maybe even less as one of their neighbours houses is up for sale this year at €150000 with no buyers and are being told to reduce.
 

Saavy99

Frequent Poster
Messages
586
So if it's found they liable for property tax and house was in band 1, 0 to €100,000, the estimated cost to your parents would be €90 per year since 2013 and the house hold charge previous to that was €100 and doubles to €200 for non payment. So approx €800, I have no idea what penalties Rev will charge them for non payment of the property tax.
 

elcato

Moderator
Messages
3,474
My parents are in a Tenant Purchase Scheme with the Co Council for their house, and have always thought because the house was 'Rent to Buy' they didn't have to pay property tax until the house is paid for.
As pointed out by Saavy, either way the tax will have to be paid at some stage and it's not a huge amount so probably best to sort it out either way. I have to say, and not having a go or anything but this quote above is amusing. By this logic I didn't own my my home till the mortgage was paid on it as well so why do I have to pay property tax :p
 

DebiWex

New Member
Messages
4
As pointed out by Saavy, either way the tax will have to be paid at some stage and it's not a huge amount so probably best to sort it out either way. I have to say, and not having a go or anything but this quote above is amusing. By this logic I didn't own my my home till the mortgage was paid on it as well so why do I have to pay property tax :p
Oh i know my thoughts exactly, but when i queried this with Revenue, they told me that they were classed as tenants and therefore didn't have to pay, and with the Purchase scheme they are in, the Council pay the building insurance, my parents only have to pay for contents until the loan finishes and then they will have to pay for it themselves, also if anything goes wrong with the house the Council have to rectify it so it was feasible to think that they didn't have to pay Property tax.
 

elcato

Moderator
Messages
3,474
Fair enough. If revenue told you they need a letter from the council I would tend to side with them and presume the council worker was wrong. Maybe ring again or send a letter, you may have just got a lazy answer of a worker.
 

DebiWex

New Member
Messages
4
Fair enough. If revenue told you they need a letter from the council I would tend to side with them and presume the council worker was wrong. Maybe ring again or send a letter, you may have just got a lazy answer of a worker.
Great, thanks i think i may need to call up and see them personally, they're not the most helpful in the Council unfortunately.
 
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