NPPR exemptions

Gene2

Hello All,

My son owns a house in Dublin but works abroad for most of the year as he is classified as a non resident for tax purposes. He got married 2 years ago and his wife lives in this house now on a permanent basis and she visits him abroad on a regular basis. He will also come home to Ireland for short periods throughout the year and stay in the house with her .

We understand that he would have been liable for the NPPR charge when he was single but we thought (hoped ) that because his wife now lives in the house that this would change the liability.

Is he liable for the NPPR charge? I looked at the NPPR site and there are up to 7 listed exemptions but nothing seems to cover this situation.

We would really appreciate any information any body might have to offer on this as he has to pay the LPT now and he doesn't know whether he is liable or not for the NPPR charge.

Even a link or a direction to some body or agency would be helpful.

Tks.

murphaph

I'd say not liable. Was the property ever let? If not, then I'd say he's pretty safe and probably has no liability. So, he worked abroad a lot but he had no other property in Ireland? It could easily be argued that the property was still his principle private residence. He is clearly still domiciled in Ireland IMO as his wife lives here and he returns regularly to see her etc. even though he way have been or is non-resident for tax purposes at the moment. If he travels for work (ie, doesn't have just one other abode) then I'd say it is definitely and always was his PPR and I personally would not think anything further of it.

Edit: Imagine a guy buys a house here and then work dries up in Ireland and his company send him abroad to do contracts (I know several guys in this situation btw). They could be abroad 9 months out of the year but the house they bought remains their PPR. No exemption is required. PPR is not defined by a set number of days in residence or anything like that.

D3PO

if you want to get an definitive answer ring and find out.

however if its not listed on the exemptions then odds are he is libel.

RATM

Certain variables will apply, such as weather your son and his wife are assessed for tax on a joint basis or weather he elected for them to be assessed individually. There is no straight forward answer to your sons scenario as there are other variables at play.

Gene2

Hi All,

Thanks for the replies. It looks like there is no definitive answer to this one so I think the best thing to do is complete the form as being non liable as this seems to me to be the most logical. The property was never let and he lived there as his PPR although only for short stays over the last 3 years. Fingers crossed that that will be that - it seems very unfair if it's not the case.

D3PO

Gene2 wrote: »

Hi All,

Thanks for the replies. It looks like there is no definitive answer to this one so I think the best thing to do is complete the form as being non liable as this seems to me to be the most logical. The property was never let and he lived there as his PPR although only for short stays over the last 3 years. Fingers crossed that that will be that - it seems very unfair if it's not the case.

How is that the best thing to do ? He doesn't live there its not listed as an exemption yet you think its logical not to pay it ....

Yet you will be back on here in future moaning about a huge interest bill if your logic is wrong.

Your approach is nonsensical. Pull your head out of the sand, ring up get a definitive answer and get the decision in writing if exempt.

Otherwise accept that if you ballsed it up with your skewed thinking that you quite rightly have to accept the huge interest penalties that will be added on.

Pawwed Rig

Hi Gene
I will look this up for you over the weekend however my gut reaction would be that he has no liability due to his wife living there and him not having another residence in the state.
For the time he was single you are probably correct in saying he has a liability but I will look this up too

quietsailor

Gene2 wrote: »

Hello All,

My son owns a house in Dublin but works abroad for most of the year as he is classified as a non resident for tax purposes. He got married 2 years ago and his wife lives in this house now on a permanent basis and she visits him abroad on a regular basis. He will also come home to Ireland for short periods throughout the year and stay in the house with her .

We understand that he would have been liable for the NPPR charge when he was single but we thought (hoped ) that because his wife now lives in the house that this would change the liability.

Is he liable for the NPPR charge? I looked at the NPPR site and there are up to 7 listed exemptions but nothing seems to cover this situation.

We would really appreciate any information any body might have to offer on this as he has to pay the LPT now and he doesn't know whether he is liable or not for the NPPR charge.

Even a link or a direction to some body or agency would be helpful.

Tks.

I've been in the situation highlighted above - non resident for tax purposes - as I worked abroad for 8-9 months of the year at sea. I was still considered resident in the state as I returned here to live when I paid off the ship.

You might consider contacting an accountant, I can't see the average person in the NPPR offices or even Revenue being very familiar with the non-resident rules, it will have to be someone who deals with these situations regularly who can advise you

Pawwed Rig

Hi Gene

So I looked this up for you and it is not actually as clear cut as I would have expected.
The NPPR charge applies to every residential property owned by a person regardless of whether you are Irish resident or not if it is not your main residence. If you only own 1 house but are renting elsewhere you are still liable to the charge. It is irrelevant whether you rent out a property or not as an owner is defined as a person who
'is entitled to receive the rent of the property or, where the property is not let, would be so entitled if it were so let'.

The issue is the NPPR legislation is actually silent on married couples other than to provide the exemption in the case of a court ordered divorce/separation.

You have a possible out under the definition of a PPR (Principal Private Residence) in capital gains tax legislation.
Where there is more than 1 house that could qualify as your PPR the actual PPR needs to be determined as follows
1. Notify the Inspector of Taxes (IoT) of the property you want to be your PPR.
2. If inspector agrees that your Irish property is your PPR then you can argue that you are not liable for the NPPR charge for the past 2 years and each year from now. You would therefore be seeking the exemption under section 4 (1) (a) (i) of the act.
3. If the IoT does not agree then he will decide what he thinks is your PPR and will notify you.
4. You can appeal if you do not agree with him.

Get your son to contact the IoT asap. Revenue do not deal with NPPR but if you can get a determination from Revenue that this is your sons PPR I cannot see any local council arguing to the contrary. It will also benefit him when selling the property as if it is not deemed his PPR he will be laiable for capital gains tax on part of the proceeds of the sale.

It is not clear whether he ever paid the NPPR but if he hasn't be aware that there a huges penalties that are applied that will be a multiple of the original €200 per annum so he needs to get this sorted.

Gene2

Thanks to all for your very helpful replies in relation to this NPPR dilemma and in particular to Pawwed Rig for his specific and valuable advice.

I will ask my son to do what you advise and because he (my son) still returns home every couple of months or so for a week or two and his wife lives there full time and he does not own any other property anywhere else I am quite hopeful that this will convince the powers that be to rule in his favour.

If we do hear anything back soon I will update you all.