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Here you can access summary of the key current tax developments in Ireland, the UK and internationally as reported by Chartered Accountants Ireland

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Income Tax Self-Assessment and the Local Property Tax (LPT) Surcharge

Some members have been asking how to deal with an LPT surcharge on the Notice of Assessment for 2012 where no LPT was due. We have clarified with Revenue that the taxpayer should contact the LPT Branch to rectify the position. We have also asked Revenue how they propose to deal in 2014 with LPT surcharges under the new self-assessment system, given that no notice of assessment will issue. Revenue have provided a written response to us on both these matters.

Revenue’s response is as follows:

“Section 38 of the Finance (Local Property Tax) Act 2012 (as amended) provides for a surcharge. This surcharge will apply where the liable person is a chargeable person in relation to a chargeable period and - has not prepared and delivered an LPT return or paid the LPT payable or entered into an arrangement with Revenue for payment of LPT - on or before the specified return date for the chargeable period.

Where a surcharge arises in respect of LPT it is highlighted as LPT in the Notice of Assessment. Should the liable person consider that the surcharge is not correctly due they should contact the LPT Branch who will review the LPT liability.

If the LPT provisions have not been met and the position is regularised the surcharge will be capped at the LPT liability.

If the surcharge is not due e.g. a duplicate property is associated with the liable person or the property has been sold before the liability date etc., LPT Branch will amend the LPT register to reflect the correct position.

LPT Branch will liaise with the relevant district whose function it is to amend the Notice of Assessment.

In the context of 2014 and subsequent years where full self-assessment will apply Revenue will consider the appropriate means to address the issue of a surcharge arising under Section 38 of the Finance (Local Property Tax) Act 2012 (as amended) and revert in due course to TALC Collection”

Further details on the LPT surcharge and obligations for 2014 are available from the Revenue website. Chartered Accountants Ireland will continue to engage with Revenue on LPT issues and report any updates in Chartered Tax News and tax.point.