On the 1st of November 2021 a new valuation period for Local Property Tax commenced. This new valuation period will apply from the 1st of January 2022 to the 31st of December 2025.
The Finance (Local Property Tax) (Amendment) Act 2021 brought about a number of changes. The previous exemption from LPT that applied to Builders Trading Stock is no longer available beyond 2021. Properties that are newly built and are suitable for use as a dwelling on a liability date being the 1st of November in any year now have to be registered with Revenue as owners on the relevant liability date and must pay the LPT in respect of these properties. This puts Builders and Developers on the same footing as individuals who own their own houses on a particular liability date.
Interestingly, a property that becomes suitable for use as a dwelling after the 1st of November in a given year will not be liable for LPT until the 1st of November of the following year.
To assist Builders and Developers with this new requirement, Revenue have set up a specific section on its website.
Further guidelines are expected to issue in relation to how property can be transferred and comply with the new Local Property Tax Legislation and that is eagerly awaited.
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