The Revenue is in the process of sending letters to some 1.4 million homeowners in Ireland asking them to assess the value of their home for the purposes of local property tax (LPT).
The self-assessed value of the property will determine the rate of LPT owners will be required to pay each year from 2022 to 2025, and this is the first time homeowners have been required to value their homes since 2013.
So, if you’re worried about valuing your own home, don’t worry: it’s easier than you think. Here’s everything you need to know.
Homeowners are required to pay LPT, although there are a few exemptions.
You are not required to pay LPT in cases where the property has been vacated for more than a year due to mental or physical infirmity or if a property has been bought, built or adapted to make it suitable for use by permanently or totally incapacitated person
Homeowners are also exempt from LPT when the property has been certified as damaged by pyrite or the property qualifies for the Defective Concrete Blocks Scheme. Some 100,000 homes built since 2013 that previously weren’t in the tax bracket will be subject to LPT from next year, and the rules are no different for owners of those properties.
How much LPT am I required to pay?
Well, that is determined by the market value of your home, which is likely to have increased substantially since 2013 when homeowners were last required to submit a valuation for the purposes of LPT.
In light of house price inflation over the past eight years, the basic rate of LPT has been reduced from 0.8% to 0.1% and valuation bands have been widened to ensure amount of tax paid on a property is unlikely to rise.
In all, there are 19 LPT valuation bands, ranging from the lowest bracket for properties valued at €1-200,000, which has a basic rate of €90, all the way up to €1.66-1.75 million (€2,721).
For the average home, owners are likely to pay €225 (€200,001-262,500), €315 (€262,501-350,000) or €405 (€350,001-437,500) in LPT annually.
LPT for properties worth more than €1.75 million is calculated from the valuation of the property rather than from a valuation band.
There are also local adjustment factors, with reductions and increases on the base rate in a number of counties, for instance there’s a 15% reduction on properties in Dublin city and a 15% increase in Donegal.
What are homeowners required to do?
- determine the market value of their property as of November 1, 2021.
- submit their LPT return with the valuation by November 7, 2021
- pay or make arrangements to pay their LPT for 2022.
How can I value my home?
The Revenue has an interactive tool that considers location, average price range, date of built and a range of other factors in valuing your home.
You can search for your home by county or Eircode and find it on the map, which will overlaid with the valuation band assigned to that area.
Pat Davitt, CEO of the Institute of Professional Auctioneers and Valuers (IPAV), said the best accessible tool for valuations would be the Property Price Register, which logs all residential property transactions since 2010.
You can use the register to find homes in your town or street that have been recently sold and use those valuations to get a good idea of the market value of your home.
‘Chances are that a property is going to come up that’s pretty close to your own property, and this will give you the very best idea of the market value of your house,’ Mr Davitt said.
What if I get it wrong?
Revenue LPT branch manager Katie Clair said that 97% of homeowners are compliant, so if there’s any discrepancy in your self-assessment, the Revenue will engage with you in good faith in the first instance.
‘We have over 97% compliance with LPT, and the documentation that people provide or retain when they submit their valuation to Revenue, it does support the valuation that they have given their property, but if the information can’t be supported, Revenue will engage with the owner to agree a revised valuation,’ Ms Clair told Today with Claire Byrne.
How do I submit my self-assessed valuation?
The best way to submit your valuation is through the myAccount section of the Revenue Online Service at Revenue.ie or directly through the Local Property Tax portal.
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