The CCAB-I responded to the Department of Finance consultation on Local Property Tax (LPT) and called for a tax deduction for LPT in the calculation of rental income in light of the fact that LPT is a direct cost for landlords providing residential rental property.

The CCAB-I noted that it is essential to ensure that the basis for levying LPT remains secure and for that reason, we advocate that the database of property valuations be regularly updated. The rate at which LPT is applied should be adjusted to ensure that the tax is manageable for taxpayers and to ensure a consistent yield for the Exchequer.

According to the Department of Finance, the purpose of the consultation is to inform the Minister for Finance in relation to any actions he may recommend to Government concerning the overall yield from LPT, its contribution to total tax revenue and the best way of achieving that objective. The review is being conducted by an interdepartmental working group chaired by the Department of Finance. It is intended that the review group’s report will be presented to the Minister for Finance in summer 2018.

You can read CCAB-I’s submission in the Tax Representations section of our website and in a future edition of tax.point.