HOME owners whose houses are valued at £101,000 or more and whose family income is £30,100 or more will be liable for residential property tax this year under new terms announced last night by the Revenue Commissioners.

Last year, houses valued at £94,000 combined with a household income of £29,500 came within the residential property tax net. For this tax year, starting on April 5th, the thresholds have been increased. The income of the household - including that of the owner/occupier and all who live in the house must be £30,100 - and property's market value must be £101,000 before RPT becomes payable.

The house value increases are in line with the annual increase in new house prices at the end of last December, according to the Revenue. The income threshold increases are in line with inflation. The tax is payable at 1.5 per cent on the difference between the market value of the residential property and the exemption limit of £101,000. This means that the owner of a house valued at £125,000 will have to pay a maximum of £360 this year, according to the Revenue Commissioners.

The tax payable is reduced by 10 per cent in respect of each qualifying child. The tax payable is also reduced by marginal relief where the household income is between £30,100 and £40,100, or £45,100 for people over 65 years of age. For example, the maximum for a qualifying household where the property is worth £150,000 will be £735. However, after deductions of reliefs this figure could fall to £288. A house worth £300,000 could face a maximum RPT of £2,985, but this could fall to £1,170 after deductions of reliefs.

Householders will receive forms and instruction leaflets on limits and exemptions in August or September. They must complete the form, when they get it whether they believe they have to pay it or not. The form must be returned, together with the payment, if applicable, to the Revenue by October 1st.

The Revenue says compliance is getting better every year, but if households do not comply they may be prosecuted and fined £1,200 if convicted. However cases rarely go to court.

Last year, the yield from the tax amounted to £12.13 million, compared to £14.2 million in 1994. The lower tax take occurred because of changes in the exemption limits, according to the Revenue Commissioners.

In 1983, 4,120 households were deemed exempt. This jumped to 17,500 in 1994, but fell back to 10,430 in the year to April last.