Properties purchased or adapted or built for use by incapacitated persons
Your residential property may be exempt from Local Property Tax (LPT) if it was bought, built or adapted to make it suitable for use by a permanently and totally incapacitated individual.
The conditions for this exemption require that the incapacitated person:
- is permanently and totally incapacitated to the extent that he or she is unable to maintain himself or herself by earning an income from working
- has received an award from a court or the Personal Injuries Assessment Board or benefitted from a public trust fund, or, if not, should apply to Revenue for approval of the exemption
- condition is so severe that it dictates the type of property that he or she can live in.
- for whom the property was adapted or acquired, should occupy the property as their sole or main residence on a liability date for the year of exemption. For example, as 1 November 2021 is the liability date for LPT payable for the year 2022, the incapacitated person should occupy the property as their sole or main residence on 1 November 2021. This applies for each subsequent year.
The requirement to be able to earn an income from working is not relevant in the case of children under the age of 16. Such children are treated as being permanently and totally incapacitated where they receive a Domiciliary Care Allowance from the Department of Social Protection (DSP).
The exemption applies to adapted properties if the cost of the adaptation exceeded 25% of the market value of the property (before it was adapted). A letter from a doctor is required to confirm the nature of the incapacity and that any adaptation work was necessary in the context of the incapacity.
How to apply for this exemption
You can claim this exemption as part of your LPT Return for 2022, which you should submit by 7 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.
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 2 in the box in Part 3 of the form.
If the incapacitated person has not received an award from a court or the Personal Injuries Assessment Board or benefitted from a public trust fund, Revenue will need to approve the exemption. You should complete and submit one of these two forms to Revenue to apply for this exemption, along with relevant documentation.
- Form LPT7 where the incapacitated person is 16 years of age or older
- Form LPT8 where the incapacitated person is under 16 years of age.
Detailed information about this exemption, how to complete the relevant form and the documentation you will need to submit will be published in the coming weeks under Further guidance.
If this exemption already applies to your property for 2021, you should simply claim the exemption on your LPT Return for 2022. You do not need to submit the relevant form and documentation separately to Revenue.
Properties adapted for occupation by a person with a disability
In certain cases, you are permitted to reduce the valuation of your property that you submit in your LPT Return to Revenue. Relief is available from LPT if certain conditions are met. Detailed information on this relief will be published in the coming weeks under Further guidance.
Changes in eligibility for this exemption
If your property is sold, the exemption will continue to apply until year-end. The property will become liable for LPT on the next liability date of 1 November for the following year.