Deferral of payment

Overview

In certain circumstances you can defer or partially defer the payment of your Local Property Tax (LPT). Deferral arrangements are available where there is an inability to pay and certain specified conditions are met. A qualifying person may opt to 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. The balance of 50% of the tax must be paid.

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

Deferral is not an exemption. Payment of the LPT is deferred. 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. Any outstanding charge, including interest, must be paid to Revenue when the property is sold or transferred to another person.

There are four separate categories of deferral of LPT available:

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

Next: Income thresholds