Deferral of payment

Overview

In certain circumstances you can fully or partially defer the payment of your Local Property Tax (LPT). Deferral arrangements are available where certain specified conditions are met. A qualifying person may opt to fully defer, or partially defer, payment of the tax.

Where a person qualifies for a full deferral, then 100% of the liability can be deferred. Where a person qualifies for partial deferral, then 50% of the liability can be deferred.  You must pay the balancing 50% of the tax by another payment method. The balancing payment must be made in line with the due date for the payment method you select.

There are a number of conditions that must be met to qualify for a deferral. In the case of an individual, for full deferral the income must be below €15,000. For a partial deferral, the income limit must be below €25,000. (€25,000 and €35,000 thresholds apply for couples). These thresholds increase by 80% of gross mortgage interest payments.

Deferral is not an exemption. You are deferring the payment of the LPT. The deferred LPT becomes payable later and carries an interest charge of 4% per annum. The deferred LPT remains a charge on the property until it is paid.

There are four separate categories of deferral of LPT available:

  • income threshold
  • personal representatives of a deceased liable person
  • personal insolvency
  • hardship grounds.

Deferral and sale or transfer of a property

You must pay any outstanding charge, including interest, to Revenue when you are selling or transferring the property. Clearance for sale or transfer of a property is not secured where payments are still deferred. You must discharge all charges, inclusive of the amount of interest due to date of payment, before clearance is in place.

Next: Income thresholds