Deferral of Local Property Tax payment

Overview

You can defer the payment of your Local Property Tax (LPT) if you meet certain specified conditions. A qualifying person may opt to either:

  • fully defer payment of LPT
  • or
  • partially defer payment of LPT, with 50% paid and 50% deferred.

If you think you are eligible for a deferral but you have not yet submitted your LPT Return, you should do so immediately.

A deferral is not an exemption. You are deferring the payment of the LPT. The deferred LPT becomes payable at a later date. The deferred LPT remains a charge on the property until it is paid. Interest accrues on the unpaid amount until it is paid. Revenue clearance for a sale or transfer of a property will not be granted where payments are still deferred.

There are five separate categories available for deferral of LPT:

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

Interest rate

The current deferral interest rate of 4% will apply up to 31 December 2021. From 1 January 2022, the rate of interest that will be charged on all deferred amounts will be reduced from 4% to 3% per year. However, this will not affect the amount of interest accruing to 31 December 2021 at the rate of 4%.

Duration of deferral for each category

The duration of deferrals will vary depending on the category of deferral and your circumstances.

Summary of how to apply and duration of deferral for each category
Deferral category Duration of deferral
 Income Threshold Deferral claimed will remain in place for the valuation period 2022 to 2025, unless the property is sold or transferred during this period.
Mortgage-adjusted income threshold Deferral claimed will remain in place for the valuation period 2022 to 2025, unless the property is sold or transferred during this period. 
Personal representatives of a deceased liable
person
This deferral is claimed for a maximum period of three years starting on the date of death of the liable person, unless the property is sold or transferred within the three-year period.
Personal insolvency This deferral is claimed for the period for which the insolvency arrangement is in place.
Hardship grounds This deferral applies for 1 year only.

Next: Income thresholds