Deferral of payment
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.
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