Non Principal Private Residence Charge (NPPR), Household Charge and Local Property Tax (LPT)
In relation to the sale of a residential property, a Vendor should be aware that before a sale can be finalised, the Vendor may be obliged to show evidence of the discharge of a number of charges being Non Principal Private Residence Charge (NPPR), Household Charge and Local Property Tax (LPT) which attach to the property.
NPPR Charge is a charge on a property for a period of 12 years from the due date for payment of the charge, as set out by the Local Government (Charges) Act 2009, as amended. The charge came into effect in 2009 and was abolished in 2013. On each of those years you were liable to pay the charge on the liability date each year. Failure to pay within three month from the liability date resulted in late payment fees and penalties being imposed. The vendor is obliged to give to a Purchaser either a certificate of discharge or a certificate of exemption for the charge on completion of a sale. Certain properties are exempt from the charge as set out in section 4 of the 2009 Act , for example, a residential property owned by certain charities or your principal private residence is exempt from this charge but you would still be obliged to furnish to the Purchaser a certificate of Exemption in those circumstances. The solicitor would be able to advise you on whether your property would be liable for the charge. The local authority under Section 76 Local Government Reform Act 2014 has discretion in some exceptional hardship cases to reduce or write off part of the liability.
Household charge is also a charge on property for a period of 12 years from due date for payment of the charge. It came into effect for one year only in 2012 and was abolished on 1st January 2013 and was replaced by LPT. The vendor is obliged to give a certificate of discharge , a certificate of exemption or a certificate of waiver for the charge . Certain properties would be exempt from the charge for instance if a property on the liability date is situate in an unfinished housing estate. In relation to an uninhabitable derelict house you would have to apply to Revenue claiming exemption by means of statutory declaration and furnishing photographic evidence of the condition of the property.
Despite the abolition of the NPPR Charge and Household Charge Vendors still have to deal with both of these charges for a period of 12 years from the last due date.
Local Property Tax (LPT) A vendor of residential property shall before completing a sale pay any LPT penalties and interest in respect of the property. Any unpaid tax shall be and remain a charge on the relevant property to which it relates and shall continue to apply without a time limit until the tax is paid. The solicitor can check with revenue what the LPT status is by being furnished with the LPT ID No. , Pin No. attaching to the property and the Vendors PPS number and this will enable a LPT History Details to be printed. The deadline for payment of the 2017 LPT charge in full is 11 January 2017. If you are the liable person for the property on the 1st November 2016 you have to pay for 2017. The amount you pay for 2017 is based on the value declared to revenue for the property on the 1st May 2013.
With any of these charges you may be able to claim exemptions and the relevant acts has a list of exemptions clearly defined therein.