Local Property Tax 2015 – issues for sale of your house.
It gets harder to keep up with the changes Revenue keep making to Local Property Tax.
There are issues for sale of your house.
As we now know , the 2015 tax is based on ownership of a house on 1st November 2014, even though the tax is not due till 2015.
I have problems appearing in my Files where a homeowner is paying this tax by monthly deduction from salary and has agreed the sale of his house within the past 2 weeks. Obviously, anyone selling or buying a house in November wants to be in for Christmas , so there is a bit of pressure on all sides.
The Buyer’s Solicitor must get from me as Seller’s Solicitor , proof that LPT is paid in full when the house sale completes as that is the only way he can be certain that there are no arrears that might attach to the title of the house and continue to gather interest.
The usual proof is a print-out from the LPT website that shows no tax due. However, since Nov 1st 2014 , even if the 2014 tax is fully paid, the taxpayer is shown as owing the 2015 tax.
My client , who has been paying by the month , must now pay all of the tax for 2015 in a lump sum , so that the printout will show a nil balance.
But he won’t be in the house in 2015 – the new buyer will. So, I ,as the Seller’s Solicitor must PROTECT my client by inserting a Condition in to the Contract for Sale that requires the buyer to refund my client for all of the 2015 LPT.
Because this Tax is paid in advance and also becomes linked to the property Title if not paid , sellers are placed in a very harsh position from a cashflow perspective.
If you are selling in these weeks or indeed in the first months of 2015 , then check that you are protected.
Contact us for further help.
By Neil Butler