The revised deadline for property owners to submit their Local Property Tax (LPT) return for 2022 is 5pm, Wednesday 10 November 2021. LPT returns for over one million residential properties have been submitted to Revenue to date.

Property owners have to do three things to comply with their LPT obligations by the deadline:

• determine the market value for their property as at 1 November 2021;
• submit their LPT return; and
• notify Revenue of how they intend to pay the LPT.

We outline below some practical tips on complying with these obligations for property owners filing LPT returns over the coming days.

1. Determine the market value of the property

The starting point for LPT is to determine the market value of the property. This identifies the appropriate valuation band which determines the LPT due. Revenue’s online valuation tool and the estimates provided in Revenue’s LPT letters are intended to assist property owners to self-assess the value of their property.

As Revenue’s estimates are based on average valuations in an area, a property owner should consider the specifics of their property in comparison to other properties in their area when determining the market value. The property may have unique features to be taken into account in assessing the market value that would mean the average valuation indicated by Revenue is not reflective of the property’s value.

Revenue expects property owners to make an honest assessment of their property and has highlighted various resources that can be used in valuing a property. For example, identifying sales of comparable properties registered on the Residential Property Price Register, local newspapers, commercial property sales websites and information from estate agents.

There is no need for the property owner to contact Revenue if they are selecting a different valuation band to that indicated by Revenue’s online valuation tool or correspondence. A property owner can simply select the relevant valuation band on the LPT return based on their own research.

Property owners who qualify for exemption from LPT still need to submit a self-assessed valuation of their property on their LPT return to claim the exemption. Details of properties that qualify for exemption for LPT and the relevant conditions are available on the Revenue website here.

2. Keep a copy of information supporting the market value selected

It is really important to keep a copy of any information sources and documentation used to determine the market value of a property. Revenue may request this information at a later date, if they disagree with the valuation band that the property owner selected on the LPT return and consider that the LPT is underpaid.

As LPT is a self-assessment tax, it will be subject to the usual Revenue compliance checks that apply for other self-assessed taxes. This also means interest and penalties can apply if Revenue conclude that a property was undervalued and LPT was underpaid.

3. Check the LPT liability due

Once the market value of the property has been determined, it is possible to check the amount of LPT due before completing the LPT return.

Revenue has a helpful LPT calculator where property owners can select the relevant valuation band and the Local Authority where the property is located to calculate the LPT liability. Some Local Authorities apply a “Local Adjustment Factor” which reduces or increases the LPT base rate for properties in their locality and alters the LPT due.

The full list of valuation bands with the LPT base rate and Local Adjustment Factors is available on Revenue’s website here.

4.If a hard copy of Revenue’s letter on LPT was not received

A hard copy letter from Revenue is not required to submit an LPT return. Property owners registered for myAccount or ROS can check their online records to access their LPT information. Of the 1.4 million LPT letters issued by Revenue, approximately 900,000 were issued in hard copy with the balance issued to property owners via MyAccount and ROS.

5. Options for paying LPT

There are a range of options for paying LPT and can be selected on the LPT return.

So far, the most popular payment options are paying the LPT by monthly direct debits over 2022 or in a single sum (via an Annual Debit Instruction). If paying by Annual Debit Instruction, the LPT will be deducted from the property owner’s bank account on 21 March 2022.

If a property owner chooses to pay their LPT by credit or debit card, the payment will be deducted immediately upon submitting the LPT return. A different payment option such as a monthly or annual debit instruction will need to be selected if a property owner wishes to pay the LPT at a later date.

The range of payment options and the payment dates are detailed on Revenue’s webpage here.

6. Where the property is not included on the LPT Register

Self-build residential properties built after 1 May 2013 may not be included on the LPT register. If this is the case, the property owner will need to register the property so that an LPT return can be filed.

Property owners can register their property by clicking on the ‘Register New Property’ link on the Property Services Card in myAccount or in the ‘Other Services’ section on the ROS homepage.

7. Waiting on a response from Revenue on LPT obligations

In a press release on 5 November, Revenue noted the large number of queries it has received from property owners about LPT. Revenue is working through the queries as quickly as possible. Property owners who have submitted a written query to Revenue (via MyEnquiries or by post) in respect of their 2022 LPT obligations in advance of the filing date, will be treated as having complied with their requirements on time, provided that they file their LPT return promptly as soon as their query is resolved.

Need additional support

Revenue has extensive information on LPT available from www.revenue.ie.

Revenue’s LPT Helpline (01 7383626) is also open until 8pm on Monday, 8 and Tuesday, 9 November and open until 5pm on Wednesday, 10 November to help those who need additional support to comply with their obligations.

The Institute’s LPT webpage also includes further information and resources, including the new band structure and rates.