Deferral of Local Property Tax payment
Mortgage-adjusted income threshold
This category of deferral operates in a similar way to the ‘income threshold’ category. However, income thresholds in this category are higher where a claimant pays mortgage interest on their only or main residence.
Owner occupiers who pay mortgage interest can increase the standard income thresholds by 80% of the gross interest that will likely be paid in the relevant year. To avail of this deferral category, the mortgage should have been taken out before 1 November 2020. You cannot avail of this deferral category if you have taken out your mortgage since 1 November 2020. If you are already availing of this deferral you can continue to do so, as long as you meet the eligibility criteria.
A claim for a deferral under mortgage-adjusted income threshold is on a self-assessment basis. However, claims may be selected by Revenue for verification.
To claim this deferral, you should estimate:
- your likely gross income for the year in which the liability date falls (the liability date is 1 November in each year)
- and
- the amount of mortgage interest that you are likely to pay by the end of that year.
Thresholds for claiming either a full or partial deferral
| Liable person (owner-occupiers only) | To qualify for a full deferral gross income should not exceed | To qualify for a partial (50%) deferral gross income should not exceed |
|---|
| Single or widow(er), with mortgage |
€18,000 + 80% of expected gross mortgage interest payments |
€30,000 + 80% of expected gross mortgage interest payments |
| Couple, with mortgage |
€30,000 + 80% of expected gross mortgage interest payments |
€42,000 + 80% of expected gross mortgage interest payments |
Note
The mortgage interest payments in the table above refer to the estimated interest that you will pay in the relevant year. The ‘relevant year’ is the year before the year in which the LPT for your property becomes payable. Further information is available in the Guidelines for deferral of LPT.
How to apply for this deferral category
There was an option to apply for an Income Deferral on the LPT Return. If you have already submitted your LPT Return but now wish to apply for a deferral you should submit your request through myEnquiries or by Post to:
FREEPOST
LPT Branch
PO Box 1
Limerick
Next: Personal representative of a deceased liable person