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FTB underpaying LPT -> should I apply for DIRT refund and admit current market price?

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  • 18-08-2017 10:20am
    #1
    RizzoJR
    Registered Users Posts: 85 ✭✭


    Hi,

    I am FTB and received LPT bill which was 2 levels below price I had paid.
    I believe the previous owner had declared this lower valuation YEARS ago
    and it had simply never been adjusted with the market recovery.

    In speaking to some colleagues and neighbours, everyone seems to be paying LPT at lower ranges to what current market values are....

    Anyway, if I try to avail of maybe the only benefit that seems left to FTB
    http://www.revenue.ie/en/online-services/services/common/apply-for-dirt-refund-for-first-time-buyers.aspx

    I will have to declare my purchase price, into the same system where my property tax is paid!!!
    Hence the revenue are probably gonna reset my LPT level to "correct" range.

    I need to calculate how much dirt I will actually get refunded,
    and weigh up this risk?

    JR

    PS this isnt to start debate as to whether one should declare honest market price for LPT, but rather is this FTB DIRT refund really a revenue inspector!
    Tagged:


Comments

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    #2
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,285 Mod ✭✭✭✭The_Conductor


    Rizzo- Revenue have access to the actual price you paid anyway- it'll have been declared by your solicitor when stamp duty was being paid.
    There is a reassessment of all LPT bands going on at the moment- yes, you'll probably pay more- but so too will your neighbours.

    Its thought the manner in which LPT is calculated is going to be thoroughly overhauled- it'll probably be a combination of the market value of the property- alongside the square footage of the property- aka someone with a mansion in Leitrim that is worth sweet damn all because its in the back of beyond- is now going to have make a reasonable payment in LPT- which is cognisant of the much higher cost of supplying services, facilities and amenities to them- than someone in Stillorgan- who has a property a tenth the size but worth twice as much...........

    Its all up in the air how the changes are going to impact people- however- its looking increasingly likely that its not going to based solely on the market value of a property (which is seen as a 'Dublin tax')


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    #3
    ionapaul
    Registered Users Posts: 5,297 ✭✭✭ionapaul


    From my understanding, the LPT band that a property was placed into in 2013 is fixed until 2019; so I think the bill you got was probably 100% correct in this circumstance, you should be paying the exact same amount as the previous owner did for 2014, 2015, etc...


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