During the recession and subsequent bailout by the troika, the government brought in the Local Property Tax (LPT). The purpose was to widen the net on tax collection. The scheme is operated by the Revenue and is based on a self-assessment of the value of your home and came into effect in 2013. There are various method of paying your charge but you may be entitled to LPT relief if you meet certain criteria and have a child with special needs.
- Reduction Relief
If you have carried out adaptions to make your home more suitable for your child with special needs and the adaptation work has resulted in an increase in the value of your home. Because the adaption work was specific for your child, and the increase in value wouldn’t have occurred only for the adaptation, then Revenue will allow you to stay in the original LPT band. From the year 2017, the relief will operate by allowing the chargeable value to be reduced by a fixed annual amount of €50,000.
The adaption makes your home more suitable for your child’s ability to live in the house.
Your child must live with you on a full-time basis.
The value of your property has increased as a result of the adaptation work.
You have received the Housing Adaptation Grant. However, I believe that these criteria have been relaxed.
- Full Exemption
A full exemption from the charge to LPT on your home may be granted if you have built or purchase your family home because of your child with special needs. The type of property you purchased must be specifically suitable for your child to live in.
Your child must live with you on a full-time basis at the property
The property must have been constructed or acquired because of its suitability.
If you adapted your current home then the work must have been carried out for the sole purpose of making the property more suitable for your child
When all the work is finished then the value of your home must have increased by at least 25%.
Where to find out more
The Revenue have lots of useful information on their website that can better guide you https://www.revenue.ie/en/tax/lpt/exemptions.html
The specific application form is “LPT8” and you will need to complete this form for the exemption. Like all thing in the area of special needs, I would strongly recommend that you fill in the relevant paperwork and send it off the Revenue and let them assess your case. Best of luck with your application.
If your intention is to leave your family home in the Special Needs Trust for your child and you have been granted one of the above reliefs then it is vital that you note this information in your Letter of Wishes and speak to your Trustees. recommend that you fill in the relevant paperwork and send it off the Revenue and let them assess your case. Best of luck with your application.