Friday 28 November 2014

Homeowners to pay additional property tax if property values were under-declared

Published 13/08/2014 | 09:19

Some 3,900 property owners voluntarily corrected their valuation upwards this year
If a home is sold for 15 per cent over its estimated value for the Local Property Tax, the vendor faces a Revenue assessment.

Homeowners will have pay additional property tax to the Revenue Commissioners before being able to sell their properties, if their properties evaluations were under-declared.

If a home is sold for 15 per cent over its estimated value for the Local Property Tax, the vendor faces a Revenue assessment.

However, homeowners will only have to pay an additional fee if their original property evaluation was less than what it should have been.

Ann Rooney from Revenue told RTE’s Morning Ireland: “The important thing here is the difference between the declared property evaluation and the selling price must be in excess of 15 per cent before we need to consider it at all.”

“If we do consider it, it’s the original declared value that we’re looking at, not the increase in price in the meantime. We’re not in the business of penalising somebody for an increase in value, provided that the original declared value was correct.”

Ms Rooney said homeowners can submit to Revenue details on the value of a neighbouring property, or evidence from www.daft.ie, or their own original property evaluation to help their case.

They must submit their LPT5 application to Revenue along with these details.

“At the time of the sale, the seller is obliged to provide certain details to the purchaser including the declared value.”

“At that point if the 15 pc differential is there, they should then consider, how did they arrive at the original value? Was the sale price established by reference to neighbouring properties, if it was and again if it was honestly and reasonably made, then there’s no issue.”

“A lot of people are in a position to say that their original declared value was correct,” she said.

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