Colleagues are reminded that on the sale of a residential property the liable person for LPT is the owner of the property on the liability date being 1 November in every year. Accordingly the owner of the property on 1 November 2021 is the liable person for the 2022 LPT.

The committee had raised with Revenue the scenario whereby a vendor closes a sale before a liability date (1 November), but the purchaser dates the deed after the liability date.  On the face of it, it would appear to Revenue that the vendor is the liable person for the following year’s LPT. 

Revenue’s position is that the LPT legislation (Section 11(1) of the Finance (Local Property Tax) Act 2012) provides that the “relevant date” is the date on which the purchaser is entitled to take immediate possession of such property (for a period that may equal or exceed 20 years) or is entitled to the rent (unless from a local authority or approved housing body) of such property (for a period that may equal or exceed 20 Years). 

Revenue appreciates that there is no requirement that the purchaser has actually taken possession – it is enough if they are entitled to take possession.  Revenue agrees that the vendor should not be held liable for the purchaser’s LPT liability in such cases but it cannot change the record until such time as they make enquiries of both the vendor and the purchaser as to when the purchaser was entitled to possession.  The vendor’s solicitor should contact Revenue as soon as they become aware of the issue at LPT@revenue.ie and supply evidence to Revenue as to when the purchaser was entitled to go into possession – this can include the date closing funds were transferred, the date of closing searches, the date of redemption of the vendor’s mortgage, etc.  Revenue will then make enquiries of both parties.  In this regard, there are some matters which they cannot discuss (for data protection reasons) with the taxpayer’s solicitor and in relation to that information they may have to contact the taxpayer direct.  It has been confirmed that Revenue staff are instructed to escalate these cases once they come to Revenue’s attention.