|
|
| Introduction of €100 Household Charge |
|
By
Brendan Twohig – Senior Taxation Director, MK Brazil
Aug 23, 2011 |
|
|
As many people will be aware, the Memorandum of Understanding with the EU/ IMF effectively commits Ireland to the introduction of a property tax in 2012 and an increase in same in 2013. Hence the Minister for Environment, Community and Local Government has announced plans to introduce a new flat-rate €100 ‘household charge’ to take effect from 2012, as a prelude to a more structure property tax regime which is expected to follow circa 2014.
The tax – estimated to generate circa €160m - is to be used to help local authorities fund local services and will apply to residential properties only. Further details will follow towards the end of the year but, in the meantime, the following is a summary of the main aspects as per the limited details currently available:
- The charge will be €100 for 2012 but this is expected to increase for 2013.
- It will apply to the owners of the property, whether or not they also occupy the property, so landlords and owners of holiday homes will be liable for all properties held by them.
- The ‘chargeable date’ will be January 2012, with individuals expected to have 3 months to discharge the liability or face late surcharges of €10 per month.
- Unpaid amounts will become a charge against the property, so for example if the property is sold then the purchaser will become liable for the amounts due.
- Like the NPPR, the Household Charge will be collected via LGMA (Local Government Management Agency). Submissions will be acceptable via post or on-line.
- Payment of the charge can be made annually or via four direct debit instalments during the year.
- There will be exceptions and exemptions, including:
- Properties forming part of the trading stock of a business
- Properties liable to commercial rates
- Social Housing or certain houses held by the State, Charities, etc.
- Homes of people forced to move due to illness etc, such as people who move into nursing homes.
- People in receipt of mortgage interest supplement
- People living in certain unfinished housing estates (Category 3 or Category 4)
Further details will follow when the legislation governing the charge is published later this year. For advisors, it will be worth reminding landlords to add this to their list along with the NPPR, PRTB and BER requirements.
 |
Brendan Twohig,
MK Brazil,
O'Connell Court,
64 O'Connell Street,
Waterford,
Phone: 051 840800
Fax: 051 874504
Email: info@mkbrazil.com
Web: http://www.mkbrazil.com
<< Go Back
|
|
|
|
omniad
|
|
|
 |
