Landlords who paid the so-called second-home charge in 2013 are being urged to file a claim for tax relief on the payment even though the charge is not currently allowable against tax.
The €200 annual charge, the non-principal private residence (NPPR), was first introduced in 2009 to help local authorities fund services, before being abolished in 2013 as a wider local property tax was introduced.
Over the period, some 360,000 second homes were registered and more than €400 million collected. It was a controversial charge, and many homeowners – often those living abroad who were unaware of the charges – built up penalties for late payment of as much as up to €7,230.
The tax was not deemed to be tax deductible during its lifetime. That meant landlords could not offset it against their tax bills. However, back in January, the High Court ruled that the NPPR was in fact deductible against rental profits.
The Revenue Commissioners appealed the judgment, and won the case in October of this year.
However, Dublin city councillor Nial Ring notes that an appeal to the Supreme Court was still possible.
Submit claims
As it is not yet known if the taxpayer who took the case will file an appeal on this decision to the Supreme Court, landlords should still submit their claims, he said.
“Until the outcome is finally determined, Revenue cannot amend assessments or process repayment claims,” he said.
As such, he is calling on any taxpayer who paid the NPPR charge for 2013 to notify Revenue this year of their claim. The Revenue applies a statutory four-year limit on claims. That means people who do not make a claim by the end of the year will not be entitled to benefit, even should the ruling subsequently be overturned.
Eligible taxpayers can make a claim using the online NPPR notification form through MyEnquiries. To be eligible, taxpayers must have paid the charge. For example, a landlord who paid tax at the maximum rate of 55 per cent, and paid on the charge on one property, would be entitled to a refund of €110.
