Properties fully subject to commercial rates

Properties which are fully subject to commercial rates may be exempt from Local Property Tax (LPT). This exemption does not apply if the property is exempt from the payment of commercial rates to a local authority.

This exemption applies where:

  • a property is solely used as a dwelling
  • and
  • commercial rates are payable on the property to a local authority.

An example of a residential property that is fully subject to commercial rates is a guesthouse that is registered with Fáilte Ireland

Different parts of a single property may be in use for both commercial and residential purposes. For example, a shop on the ground floor with residential accommodation overhead. LPT is due on the part of the property used as a residence if it is not subject to commercial rates.

If your property is used for both commercial and residential purposes, an exemption does not apply. You should:

  • self-assess the value of the residential portion of the property
  • submit your LPT Return including your valuation by 10 November 2021
  • and
  • make arrangements to pay your LPT Charge for 2022. 

How to apply for this exemption

You can claim this exemption as part of your LPT Return for 2022, which you should submit by 10 November 2021. The easiest way to submit your LPT Return and claim your exemption is online, using myAccount, Revenue Online Service (ROS) or the LPT online service.

Alternatively, you can submit your LPT Return, including your exemption claim, using the paper Form LPT1 – LPT Return. You should include your claim for this exemption by entering exemption number 5 in the box in Part 3 of the form.

You should also submit supporting documentation from the relevant local authority to Revenue

The documentation should confirm that:

  • the entire building is subject to commercial rates
  • and
  • no allowance has been made for any residential portion.

If this exemption already applies to your property for 2021 and your property continues to qualify for exemption for 2022, you should simply claim the exemption on your LPT Return for 2022. You do not need to submit relevant documentation separately to Revenue.

Changes in eligibility for this exemption

Once the qualifying conditions for this exemption are no longer met for your property, the exemption will continue to apply until year-end only. The property will become liable for LPT on the next liability date of 1 November for the following year.

If you sell your property, and it is still subject to commercial rates, the new owner can re-apply for this exemption.