Q&A

Your property questions answered

Should I have paid the 200 levy?

Q I have a query in relation to the NPPR tax. I own one residence which is rented out at present, and I live in rented accommodation elsewhere. Am I liable for the non principal private residence tax of €200? My accountant thinks I’m not but the county council have sent me a letter requesting payment. I would appreciate it if you could clarify the situation for me?

AAnother year another mailbag full of NPPR questions! Really this charge/tax/levy – landlords call it a tax, it is in fact a "charge") is seriously confusing for many people. Looking at the details of the Local Government (Charges) Act 2009 it would seem that your accountant is wrong and that your local authority right.

The crux of the matter is: which is your principal private residence (PPR)? It is, from the information you have given us, the rented house/apartment where you actually live. In your tax returns each year, you presumably declare that this is your PPR and go on to apply for the tax break on the rent you pay.

The other property, the one you own, is in fact an investment property (by virtue of you renting it out): it mightn’t have started out that way but it is now. It is your non-principal private residence (NPPR) – and therefore would appear to be subject to the €200 charge.

While this charge is self declared, cash-strapped local authorities now know that it is a source of steady annual revenue – by the end of December 2009, the €200 charge had already raised €57.4 million, almost 50 per cent more than expected – and are putting considerable efforts into tracking down the owners of holiday homes/rental properties, etc in their area, with some sending out letters similar to the one you have received.

As with any demand, you can contact them for clarification but be aware that the clock is very much ticking on this one. Payment for 2009 was due on October 31st and there is a €20 per month fine for late payers which will mount up the longer you wait.

Will mortgage relief be extended?

Q I bought my apartment (first-time buyer in 2004) and have seven years of mortgage interest relief. In the Budget it was announced that to help those who now find themselves in negative equity and for whom the relief would expire in 2010, the relief would be extended to the end of 2017. I phoned my local Revenue office who didn’t know anything about it. Also how do I prove that I am in negative equity?

The reason why your Revenue office might not have been clear about it is that there is no law on it yet, so, until the Finance Bill on February 4th, it’s still with the Department of Finance.

That’s a technical detail as far as you’re concerned and the Department of Finance tells us that, as you bought in 2004, you will be entitled to the extension until 2017. And you don’t have to prove that you are in negative equity.

Your questions

Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or email propertyquestions@irish-times.ie. This column is a readers’ service and is not intended to replace professional advice.