As a result of a drafting error in the local property tax legislation all property buyers in 2013, who occupy the property as their main residence, are entitled to an exemption from the property tax for the next three years. The exemption was originally only to apply to first-time buyers and those who bought new, or unoccupied property.

The effect of the drafting error is that anybody who purchases a property in the period 1 January 2013 to 31 December 2013 and occupies the property as their sole or main residence can claim the exemption from local property tax as provided for in section 8 of the legislation.

The Revenue Local Property Tax Manual deals with the ‘First Time Buyer Exemption’ and details how this exemption now also applies to all owner-occupier purchasers in 2013. According to the manual “properties bought in the period 1 January 2013 to 1 May 2013 by ‘non first-time buyers’ who filed a return and paid LPT for 2013 as they did not realise that the property was exempt are entitled to a refund of the tax paid. Revenue will be contacting those concerned as soon as possible”. As a reminder, 1 May 2013 was the property valuation date and property ownership date.

This exemption does not apply to the seller of the property; therefore if the property is purchased in the period 2 May to 31 December 2013, the seller will be responsible for filing the LPT return.

More details as well as examples illustrating the exemption are contained in the Revenue Manual.