Property tax loophole means revenue refunds for 6,000 homeowners

Ten of Swords

Department of Finance didn't pay close enough attention to the wording of the property tax legislation. The property tax exemption until 2016 that was intended for first time buyers during 2013 must now be applied to anyone that bought a property to live in during 2013

Revenue have known about this loophole since July but kept quiet.

http://www.independent.ie/business/personal-finance/property-mortgages/now-taxman-has-to-repay-36m-to-6000-homeowners-after-blunder-29740015.html

joeysoap

My son purchased a property in May this year. (actually bid for property in 2012 but problems with deeds etc caused a 6 month delay) He is a first time buyer, and thought that he would automatically be excluded from LPT for 2013/4/5/6 . I have now read on another forum that you have to download a form and send it off to revenue to claim this exemption. I had a look at the form and it asks value of property, property id number etc and vendors ppsn . Now where is going to find the property number and vendors PPSN.? (When I went into the property register website noticed that the sale is down as 21/02/13, this is nowhere close to accurate, May or June nearer completion date, but don't suppose that makes any difference.

Q. does he have to complete this LPT4 form, even though he is a first time buyer, and if so can he just forward it to revenue with known details and leave out the vendors PPSN. I would normally blame myself for not being aware of this information, but I did not read of this anywhere and cannot recall by information or advertisements by Revenue to the effect that a first time buyer had to claim exemption.

Revenue have not contacted him on the matter. If the property was properly registered in his name in May/June 2013 by his solicitor would that mean that he does not have to complete any form? (solicitor still has not billed him for considerable work involved in purchasing property)

kneemos

joeysoap wrote: »

My son purchased a property in May this year. (actually bid for property in 2012 but problems with deeds etc caused a 6 month delay) He is a first time buyer, and thought that he would automatically be excluded from LPT for 2013/4/5/6 . I have now read on another forum that you have to download a form and send it off to revenue to claim this exemption. I had a look at the form and it asks value of property, property id number etc and vendors ppsn . Now where is going to find the property number and vendors PPSN.? (When I went into the property register website noticed that the sale is down as 21/02/13, this is nowhere close to accurate, May or June nearer completion date, but don't suppose that makes any difference.

Q. does he have to complete this LPT4 form, even though he is a first time buyer, and if so can he just forward it to revenue with known details and leave out the vendors PPSN. I would normally blame myself for not being aware of this information, but I did not read of this anywhere and cannot recall by information or advertisements by Revenue to the effect that a first time buyer had to claim exemption.

Revenue have not contacted him on the matter. If the property was properly registered in his name in May/June 2013 by his solicitor would that mean that he does not have to complete any form? (solicitor still has not billed him for considerable work invoolved in purchasing property)

How do you find the vendor even if he is willing to hand his ppsn number to a stranger.

joeysoap

kneemos wrote: »

How do you find the vendor even if he is willing to hand his ppsn number to a stranger.

exactly. and it was not exactly a smooth transaction either. Vendor didn't have deeds in order (not even close) to complete sale,with result my son lost the mortgage relief that he should have been eligible for having 'purchased' in 2012. He subsequently reduced his offer by €5k to make some allowance for this loss and the vendor (reluctantly) accepted his new offer. Bit that puzzles me is the property register showing the property transferred hands in Feby 2013. Not even close. The person in whose name the property appeared to be registered only signed over the property to the actual seller in Feby, so maybe this is what is showing in the property register? This was one decent man, who when he was informed by my son that the property was in his name, transferred it straight away to the actual vendor, who putting it mildly had a plonker of a solicitor working for him.

question is: Does my son need to apply for exemption or will it be automatic as they property was clearly purchased by him in 2013. As I stated post he has received NO notices whatsoever from Revenue re this house.

joeysoap

updated: Contacted Revenue on the 1890 200 255 number. Very pleasant gentleman there put me through to the correct section who supplied the property number, put a note on my sons file stating that he purchased during 2013. Advised to do nothing now, that revenue will contact him probably around April with advice on what to do next. Happier now that even if the property isn't registered in his name during 2013(highly unlikely, very complicated deeds for land registry to sift through*) that he at least can prove that he contacted revenue during 2013 to state he is a ftb during 2013.

*when you go into the land registry site it states that there are 3 applications pending for this site, which could be correct, one changing the deeds into the vendors name (should have been done 9 years ago )one changing ownership of the drive way from an English owner **to vendor (cost vendor a few bob to get that sorted, involved English solicitors ) and finally transferring deeds of house and driveway to my son. think I mentioned it was complicated earlier:) The fact that vendors solicitor did not appear to be aware that neither the property or driveway was in vendors name didn't help.




mad or what?

UCDVet

I'm not sure why this is being considered a 'loop-hole'.

They were in such a rush to get more money they couldn't be bothered to read and understand the law they were pushing through. We're not talking about some bizarre combination of criteria that let's someone avoid the tax if they declare their home a church because they pray sometimes.

Our elected officials screwed up. It's not a loop-hole, it's a failure.

What's worse, is that SIX THOUSAND homeowners had funds taken from them that the government had NO LEGAL RIGHT to take. By definition, that's stealing.

Our officials screwed up the law and revenue acted illegally. And now, after a bunch of hassle, 6,000 people will get a refund of money that was, literally, stolen.

Could you imagine what would happen if Amazon.co.uk deducted payments from 6,000 Irish customers because they *thought* they could? And then, instead of immediately refunding it, made those 6,000 customers call hotlines, fill out paperwork, and prove they are entitled to keep their own money.

Hootanany

Roll 0n the Locals

tmc86

and another event that leads to diminishing trust in our government.

bunch of F*ckwits

joeysoap

Son received property tax letter today. Explained that the delay was due to multiple registrations etc etc with property and stating that he had until Jan 1 to go online and register method of payment for next year (letter stated €225 due and various methods of payment.) Went online and all details were there including an option to change details, which when ticked opened up a new screen. New screen displayed house details and also displayed that it was registered by vendors solicitor,and that the person registering the property did not own it. Option to change box to ownership, new email address, state whether if was your principal residence and also claim exemption, which he did by ticking the option 'first time purchaser in 2013' *

Looks a lot like it's only for 2014 and he will have to do the same again next year.

*there was an exemption option for non first time purchasers during 2013 also available.

dxhound2005

More property tax news today. This is the Fianna Fail second home one from 2009 which had to very sensible penalty of €20 for each month it was not paid. That ensured a compliance of about 90% but there was always going to be the Don't Register, Dont' Pay brigade who thought they could evade it.

http://www.irishtimes.com/news/politics/second-home-tax-defaulters-face-levies-of-up-to-7-230-1.1636185

Thousands of people who have failed to pay a tax on second homes could face charges and penalties of up to €7,230 as the Government seeks to bring in some €150 million it is owed as a result of non-compliance.