Local property tax

New homes purchased up to the end of October 2019 will remain exempt from local property tax (LPT) under a Bill the Government plans to pass into law this week.

The proposed legislation would extend the exemption on homes bought from builders and developers, already in place since 2013, for an additional three years beyond its existing end date of October 2016.The exemptions will mean that anyone who bought a newly built property from January 2013 on will remain exempt from the tax until at least 2020. Anyone buying a newly built property from now will also remain exempt until at least 2020.

The measure is also a boost to developers, as it also exempts unsold properties from the tax, as well as helping to attract buyers. John Lowe, The Money Doctor welcomes this new initiative which should revive the new property market which has been fairly stagnant in 2015. This was originally introduced for first-time buyers only but was extended subsequently to anyone buying a house in 2013 as a primary residence. This exemption – applying to those who bought in that year – will now continue until the end of October 2019. Mr Noonan announced in the budget that the valuation thresholds for LPT would be frozen until October 2019, meaning households paying the tax will not see an increase in their bill until then.

However, as well as freezing valuations, the amendment Bill, due to pass both houses of the Oireachtas on Friday, also continues the range of exemptions, mainly relating to the purchase of newly built homes. This means that as the years go on more and more households will be exempt. The LPT has an average cost of about €280 a year, but costs significantly more to those living in higher-priced properties. Mr Noonan has said the future of the tax is a matter for the next government and the legislation now being introduced could be altered by the next Dáil.



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