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When does the exemption from LPT for new builds actually end ?

  • 06-10-2020 05:33PM
    #1
    Usjes
    Registered Users, Registered Users 2 Posts: 327 ✭✭


    Hi,



    Ignoring any potential changes announced recently does anyone know when the exemption for new builds bought from the builder actually ends ? Will someone who bought a new build have to pay for 2021 or not ?

    The confusion for me arises because the liability date for a given year is on the November of the previous year.

    So, the liability date for the 2021 tax is November 1st 2020 but new-builds are supposed to be exempt until the end of 2020 (https://www.citizensinformation.ie/en/money_and_tax/tax/housing_taxes_and_reliefs/local_property_tax.html#l1f4da) states:
    'New and previously unused properties purchased from a builder or developer between 1 January 2013 and 31 October 2020 are exempt until the end of 2020 (even if sold again in that period).'
    So, on the liability date (1st Nov. 2020) such a property is still an exempt property and therefore doesn't have to pay for 2021 ? Is this the case or not ?
    I'm just finding the specific dates used on www.revenue.ie makes no sense:
    (https://www.revenue.ie/en/property/local-property-tax/exemptions/new-or-unused-property-purchased-from-a-builder-or-developer..aspx)
    Properties purchased from a builder or developer between 1 January 2013 and 31 October 2020 are exempt until the end of 2020.
    If they intended that such new-builds would only be exempt for the tax year ending 2020 then they should have said 'between 1 January 2013 and November 1st 2019 are exempt' because if you bought on November 2nd 2019 to Oct 31st 2020 you would not be liable for the 2020 payment anyway no matter what type of house it was, it would be the person who owned it on Nov 1st 2019 that was liable. Equally, if the intent was that buyers of new builds would be exempt for the payment for year 2021 then the specific end date called out in the exemption still makes no sense; in that case the end date they should have used was November 1st 2020.
    So, does anyone know for sure ? A new build bought from a builder in 2019, does the buyer have to pay the tax for 2021 or not ?


    Thanks,



    Usjes.


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