Local Property Tax (LPT) and self-correction guidelines

Revenue today (10/03/14) announced the publication of LPT Self-Correction Guidelines on www.revenue.ie. These guidelines outline how property owners can self-correct their LPT return in respect of under-valuations and exemptions or deferrals incorrectly claimed.

Property owners who under-declared the value of their property have until 31 March to self-correct online and avoid interest and penalties. When self-correcting, the property owner should also make arrangements to pay the additional LPT due.

Revenue’s analysis of the LPT returns received means it can identify property valuations that deviate from the norm in an area. Reviews of LPT valuations will be carried out during 2014 and subsequent years. It is therefore important that property owners take advantage of the opportunity to self-correct in order to avoid interest and penalties.

If, however, the property owner has engaged honestly and realistically with the self-assessment process having regard to the guidance available and property values at 1 May 2013, there should be no issue regarding their valuation. Valuations do not need to be adjusted to reflect any increase in property prices or any repairs or improvements made to the property since 1 May 2013.

The quickest and easiest way to self-correct is online on www.revenue.ie using your Property ID and PIN.

Since the announcement of the 6-week window to regularise your LPT and Household Charge affairs, approximately 20,000 2014 LPT returns have been received and over €700,000 is being paid on a daily basis.

Remember, 31 March is also the deadline for payment of arrears of LPT and the Household Charge without interest, penalties and enforcement activity.

[Ends 10/03/14]

Over-valuations

There have been a small number of cases where property owners have overvalued their property and subsequently overpaid their LPT due to an error or mistake in completing the 2013 LPT Return. The online self-correction facility cannot be used to self-correct a valuation downwards. If a property owner has overvalued for LPT purposes, a claim in writing should be sent to the Local Property Tax Branch, Revenue Commissioners, PO Box 1, Limerick along with relevant documentation in support of the claim e.g. photos of the property, information from propertypriceregister.ie around 1 May 2013 (further details in the Guidelines).

Updated compliance statistics

• Overall LPT compliance rate for 2013: 93%/1.82m properties
• LPT compliance rate for 2014: 83%/1.61m properties
• Household charge arrears: over €3m paid to Revenue since July 2013 representing approximately 15,000 properties
• Valuations upwards: approx. 1,700 since November
• Currently receiving 1,500 2014 LPT returns daily.

Property ID and PIN

Property IDs and PINs can be requested online on www.revenue.ie. For security reasons they will be posted to the address on Revenue’s records. Property owners should request them now to ensure they are received in good time to meet the 31 March deadline.