Landlords and developers with residential properties on hand at March 31 must make a second NPPR (non-principal private residence ) levy payment of €200 per property on or before June 30. The levy applies to all private rented properties, including holiday homes, situated in Ireland.
The NPPR levy was introduced in 2009 and the deadline for payment of the first charge - for properties on hand at March 31 2009 - was September 30 last. The new levy contributed €62 million to local authorities in 2009 and the annual take is expected to increase with greater awareness and policing of the charge.
Payment of the levy is particularly onerous on landlords with vacant property and developers with new unsold property. Fortunately, property owners will be interested to know that there are a number of exemptions from the levy. For instance, no charge applies on new unsold properties which are not let and continue to be held as trading stock of the business. Exemption also applies where properties are not complete at March 31.
Other exemptions to the levy include properties with rooms let under the ‘rent a room’ scheme, properties let by charities, and joint ownership of a property by divorcees. There are also exemptions for individuals who own two properties in the course of moving house and those who suffer from a long-term physical or mental illness.
Where no exemption is available the levy must be paid on or before June 30 next. Payments made after this date are subject to an additional penalty of €20 per month or part of month.
If you would like to discuss any of these matters in confidence, please contact Derek Andrews on (01 ) 6440100 email [email protected]