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NPPR tax ruled deductible against rental profits – appealed by Revenue Commissioners

Posted on April 24, 2017 by Browne & Murphy Solicitors

The Local Government (Charges) Act 2009, as amended by the Local Government (Household Charge) Act 2011, introduced a €200 annual charge on non principal private residences (NPPR charge), payable by the owners of the property to the local authority where the property is located. The NPPR charge applies for all years from 2009-2013. From 2014 onwards, the NPPR charge is no longer charged, but outstanding liabilities and payments may still apply.

Who is liable to pay the NPPR charge?

If you owned a residential property on the liability date in any of the years 2009 to 2013, you were liable to pay the annual charge of €200 except on your main home which would be your principal private residence. There were exemptions to the NPPR charge.

Recent Update

A recent decision of the High Court on the deductibility against rental profits of the Non Principal Private Residence charge (NPPR) has been appealed by Revenue Commissioners to the Court of Appeal.

Until that appeal is decided the Revenue Commissioners have confirmed that they are not in a position to amend assessments/process repayment claims based on the High Court judgement.

There is a general right to repayment of tax provided for in Section 865 of the Taxes Consolidation Act 1997 where a person has paid an amount of tax which is not due, however that right is subject to a limit of four years from the end of the chargeable period. As set out above the NPPR charge applies for the years 2009-2013.

As noted above, Revenue Commissioner is not in a position to amend assessments or process repayment claims until the outcome of the Appeal case is known. However, the Revenue Commissioners have confirmed that any claims that are received within the statutory time limits, as they apply to each year of assessment, will be retained by Revenue; and processed when the outcome of the Appeal case is known. Therefore if you paid the NPPR charge for 2013 and wish to notify Revenue to deduct the payment from your previously declared rental income you can so by submitting the Notification Form

The information set out above is to act as a guide and is no substitute for specific advice that you would receive from us