When you are selling you house, your solicitor will ask you to provide your Local Property Tax details to see what band it is registered in and also to check if it’s paid .Revenue allow a certain difference or margin, (different for Dublin City and County) between the valuation band you registered the Local Property Tax in and the price you are selling your house for. And the good news is that, due to increasing property prices, Revenue has increased the first threshold by €50,000 starting on September 1, 2017, and also the margin of difference between the LPT and sale price.
Because you must obtain either general Revenue clearance or specific Revenue clearance from Local Property Tax when selling your residential property. General Revenue clearance will apply where the difference between the LPT valuation band registered and the sale price is within the allowable margin or the value of the property is under the threshold. This means, you don’t need to engage with Revenue at all and your solicitor can ensure that general Revenue clearance applies to your sale.
If your LPT valuation band is beneath the threshold or outside the allowable margin, even after the new threshold and valuation margin come into effect, you can still apply to Revenue for specific clearance. You must submit an application to Revenue and your solicitor can assist you with this.
Here is the link to the Local Property Tax section of the Revenue website which has all of the information you may need when selling a residential property. There are many exemptions available also to be considered if general clearance does not apply. It is advisable to examine this matter as early as possible when selling your property to avoid delays. When selling your property, your solicitor will advise you how LPT will be apportioned between the seller and purchaser.