October 2017
The Court of Appeal reversed the High Court’s ruling and found in favour of Revenue’s position that the NPPR charge, is not an allowable deduction against rental income for income tax purposes.
The judgement found that the NPPR charge does not fall withing the term “rate” or “levy” used in the Taxes Consolidation Act 1993 (section 97(2) of that Act).
March 2017
Revenue are challenging the decision of the High Court and a case is going to the Court of Appeal. As there is a 4 year rule for claiming back expenses, the ability to claim as an expense for most of the years is now lost. However it would be advisable to submit a claim for payments made in 2013 even if they cannot be processed as yet. If the Court rules against Revenue the claim will have been made and retained for processing.
The Non Principle Private Residence Tax penalties were not proportionate or fair.
February 2017
Some good news, on the 28th November 2016, the High Court ruled that the Non Principal Private Residence (NPPR) charge is a deductible expense against rental income for Income Tax purposes.
The IPOA lobbied intensively for this allowance and are pleased with the Court decision, we are continuing to lobby in respect of the Household Charge and LPT. Prior to making your claim for back allowances be advised by your Tax Adviser.
Court ruling can be viewed:- Here
NPPR
The consequences of the non-payment of the now abolished NPPR are particularly severe. The penalties are penal and totally unfair. The IPOA lobbied and campaigned to stop the penalties from continually accruing. If a person was unaware of the liability, they currently owe over 7 times the charge.
If you owned residential property on the liability date in any of the years 2009 to 2013, and it was not your only or main residence on that date, you were liable to pay the charge of €200. The first liability date was 31 July 2009. For each year from 2010 to 2013, the liability date was 31 March.
The charge applied to all residential property that you owned on the liability date, except for your main home. The onus was on you, the homeowner, to come forward and pay the charge to the local authority in the area in which the property is located.
Table of Rates
The following table outlines the accumulated totals due in respect of NPPR and penalties for each year that remain unpaid.
Charge unpaid in respect of year
2009 €2,070
2010 €1,830
2011 €1,470
2012 €1,100
2013 €750
Total €7,230
You can register your property and pay the charge online at nppr.ie or else use a paper form.
There may be no liability to the NPPR after the 31 March 2025, the Act will then be completely repealed.
Local Government Reform Act 2014
Deceased sole owner and payment of NPPR charge and late payment fees
75. (1) Where a person who is the sole owner of a residential property (within the meaning of section 2 of the Act of 2009) dies and, at the date of his or her death, an NPPR charge, a late payment fee in respect of such a charge, or any part of such charge or fee, remains unpaid in relation to that property, then no further late payment fee shall be payable in relation to that property until a grant of representation to the estate of the deceased person issues to the personal representative of such deceased person.
(2) The personal representative of such deceased person shall, as soon as a grant of representation to the estate of the deceased person issues to him or her, be liable to pay to the relevant local authority the full amount due and owing by the deceased, at the date of his or her death, in respect of an NPPR charge and each related late payment fee in respect
of such a charge, which said full amount is, in this section, referred to as the “full amount”.
(3) If the said full amount is paid by the said personal representative within 3 months of the date of issue of the grant of representation to the estate of the deceased person, he or she shall have no further liability in respect of the NPPR charge concerned, and each related late payment fee in respect of such a charge due and owing by the deceased at the date of his or her death.
(4) If the said full amount is not paid by the said personal representative within 3 months of the date of issue of the grant of representation to the estate of the deceased person, he or she shall be liable to pay to the relevant local authority the said full amount.
(5) If the grant of representation is issued on or after 1 June 2014, and if the said full amount is not paid by the said personal representative within 3 months of the date of issue of the grant of representation to the estate of the deceased person, notwithstanding subsection (1), any late payment fees which would have applied under subsections (2) and (3) of section 74 had the person who is the sole owner of a residential property (within the meaning of section 2 of the Act of 2009) not died, shall apply.
(6) (a) In this section, a reference to “grant of representation” is, where 2 or more such grants are issued to the estate of a deceased person, a reference to the first of such grants to issue.
(b) In this section, a reference to “late payment fee” includes reference to the 50% increase provided for in section 74(3).
(7) This section shall apply on and from 2 March 2014.
Collection of undischarged liabilities relating to NPPR liabilities
76. Subject to Section 77, a local authority may act as it sees fit to most efficiently collect un-discharged NPPR charge and late payment fee liabilities in respect of any such charge including, in the case of an individual being liable, reducing such late fee liabilities in circumstances in which the local authority considers that to do so would be most efficient for the collection of the undischarged charge and liabilities.
Guidance by Minister
77. For the purposes of Sections 74 to 76, the Minister may issue written guidance to local authorities concerning any matter to which those Sections relate and each local authority shall have regard to any such guidance.
More information on the NPPR is provided here