Guidelines on Local Property Tax Relief For Disabled / Incapacitated Individuals

Guidelines on Local Property Tax Relief For Disabled / Incapacitated Individuals May 2014

Table of Contents 1. Introduction... 2 2. Summary of new rules... 3 2.1 Reduction in the chargeable value of a property... 3 2.2 Exemption from the charge to LPT... 4 3. Reduction in the chargeable value of a property... 5 3.1 Chargeable value directly attributable to adaptation work... 5 3.2 Establishment of disability and necessity for adaptation work... 6 3.2.1 Establishment of disability... 6 3.3 Occupation of adapted property by disabled individual... 7 3.4 Restriction on reduction in chargeable value... 7 4. Exemption for permanently and totally incapacitated individuals... 8 4.1 Total and permanent incapacity... 8 4.2 Establishment of incapacity... 8 4.3 Acquisition/adaptation of property and its suitability... 9 4.4 Expenditure on adaptations... 9 4.5 Occupation by the incapacitated individual... 10 4.6 Incapacitated individuals under the age of 16 years... 10 5. Claiming LPT relief... 10 ANNEX... 11 A. Reduction in chargeable value... 11 B. Exemption from the charge to LPT... 12 Form LPT6 Application for Reduction in Chargeable Value (for properties adapted for occupation by certain disabled persons) Form LPT7 Application for Exemption (for properties occupied by certain permanently and totally incapacitated persons) Form LPT8 Application for Exemption (for properties occupied by certain permanently and totally incapacitated children for whom the Department of Social Protection pay a Domiciliary Care Allowance) 1

Local Property Tax Relief for Disabled/Incapacitated Individuals 1. Introduction These guidelines deal with two reliefs applying to local property tax (LPT) which are relevant to properties occupied by individuals who are either disabled or permanently and totally incapacitated. They describe a relaxation of some of the rules governing these reliefs, following a statement made by the Minister for Finance on 2 May 2014. That statement indicated that the Minister would amend the legislation at a future date to relax some of the rules and that, on that understanding, Revenue would apply the new rules, retrospectively to 1 July 2013, on an administrative basis in line with guidelines that they would issue. Accordingly, these guidelines describe the new rules and how an individual should go about making a claim under the new rules. There are two different types of LPT relief: 1. A reduction in the chargeable value of a property that has been adapted to make it more suitable for occupation by a person with a disability where the adaptation work has resulted in an increase in the chargeable value of the property to the extent that it moves into a higher valuation band, or, in the case of properties valued at over 1m, where the adaptation work has resulted in any increase in the chargeable value. 2. A full exemption from the charge to LPT for properties that have been constructed or acquired because of their suitability for occupation by individuals who are permanently and totally incapacitated to such an extent that they are unable to maintain themselves and whose condition is so severe that it dictates the type of property that they can live in. The exemption also applies to properties that have been adapted to make them suitable for occupation by such individuals. Eligibility for the first relief depends (among other things) on the payment of a local authority grant. However, in practice, there are disabled individuals who, for various reasons, do not apply for or do not receive such a grant but who would otherwise be eligible for relief. In line with the Minister s statement, the LPT relief will no longer depend on the payment of a local authority grant. Section A below describes the circumstances in which this relief may be granted to a person where no grant has been paid. Eligibility for the second relief depends (among other things) on the payment of a court award or an award from the Injuries Board 1 or on the establishment of a public trust fund. However, in practice, there are severely incapacitated individuals who, for various reasons, do not meet these conditions but who would otherwise be eligible for the exemption. In line with the Minister s statement, the LPT exemption will no longer depend on the receipt of an award or the establishment of a public trust fund. Section B below describes the circumstances in which exemption may be granted where these conditions are not met. Examples illustrating how both reliefs operate are contained in the Annex to these Guidelines. 1 Formerly known as the Personal Injuries Assessment Board. 2

2. Summary of new rules Sections 2.1 and 2.2 below contain a summary of the conditions that must be met and the procedures that must be followed before Revenue will consider an application for relief on an administrative basis. It is recommended that potential applicants for relief read the detailed information in relation to both types of relief that is set out in sections 3 and 4 below. 2.1 Reduction in the chargeable value of a property The following requirements of the legislation must be met: the property must have been adapted for the sole purpose of making it more suitable for occupation by a disabled individual, the adapted property must be occupied as the sole or main residence of the disabled individual, and only the amount of the chargeable value of the adapted property that is directly attributable to the adaptation work that was carried out may be deducted from the overall chargeable value. Where the adaptation work has increased the chargeable value of the adapted property to the extent that it moves into a higher valuation band, (or, in the case of properties valued at over 1m, where the chargeable value is increased) but no grant towards the cost of the adaptation work has been paid, a liable person may apply to Revenue to have the increase in the chargeable value disregarded for LPT purposes. The application form requires information to be provided on: the adaptation work that was carried out, the cost of the adaptation work, the chargeable value of the property after the adaptation work was completed, and the chargeable value attributable to the adaptation work. As part of the application process, a disabled individual s general practitioner is required to provide certain information in relation to the individual s condition, focusing primarily on: the disabled individual s degree of mobility, why the adaptation work that was carried out was considered necessary, and how the adaptation work made the property more suitable for occupation by the disabled individual. There is an upper limit on the amount by which the chargeable value of an adapted property can be reduced for LPT purposes. This is the lower of the chargeable value attributable to the adaptation work carried out on the property and the maximum grant that would have been payable by a local authority if the disabled individual had applied for a grant (see section 3.4 below for details). This effectively means that the value of an adapted property may, at most, move into the next lowest valuation band resulting in an annual tax reduction of 90. 3

2.2 Exemption from the charge to LPT The following requirements of the legislation must be met: the property must be occupied as the sole or main residence of an individual who is permanently and totally incapacitated from maintaining himself or herself by earning an income from working, the property must have been constructed or acquired because of its suitability for occupation as a residence by a permanently and totally incapacitated individual, where an existing property was adapted, the adaptation work must have been carried out for the sole purpose of making the property more suitable for occupation by a permanently and totally incapacitated individual, and where an existing property was adapted, the cost of the adaptation work when it is completed must exceed 25% of the chargeable value of the property before the adaptation work was carried out. Where these conditions are satisfied, but where a court or the Injuries Board has not paid an award or a public trust fund has not been established for the benefit of the incapacitated individual, a liable person may apply to Revenue for an exemption from the charge to LPT. The application form requires information on: why the property that was constructed or acquired is suitable for occupation by the incapacitated individual, where an existing property was adapted, a description of the adaptation work that was carried out and how it made the property more suitable for occupation by the incapacitated individual, and the chargeable value of the property. As part of the application process, an individual s general practitioner is required to provide certain information in relation to the individual s condition, focusing primarily on: the nature of the individual s incapacity, the incapacitated individual s degree of mobility, why the property that was constructed or acquired is suitable for occupation by the incapacitated individual, and how (if relevant) the adaptation work made the property more suitable for occupation by the incapacitated individual. Different arrangements apply in the case of incapacitated individuals who are under the age of 16 years. In such cases: Revenue will accept that the necessary degree of incapacity is established by reference to whether a Domiciliary Care Allowance is being paid by the Department of Social Protection. A general practitioner is not required to provide information in relation to the child s condition. However, an occupational therapist is required to provide information on the degree to which the child s incapacity has affected his or her mobility and the reason why the particular property and/or adaptations were considered necessary. 4

A. Reduction in chargeable value 3. Reduction in the chargeable value of a property Section 15A of the Finance (Local Property Tax) Act 2012 (as amended) allows the chargeable value of a property that has been adapted to make it more suitable for occupation by an individual with a disability to be reduced where the adaptation work is grant-aided in accordance with the terms of certain schemes for housing adaptations that are administered by the local authorities. However, in practice, adaptation work is carried out in some cases without the payment of the required local authority grant. Under the new arrangements, the failure to get a local authority grant will not necessarily prevent an adapted property from qualifying for tax relief. Relief will be allowed on an administrative basis, in line with the statement of the Minister for Finance, where the conditions described in sections 3.2 and 3.3 below are met. Sections 3.1 to 3.4 below describe the new arrangements and the conditions that apply where adaptation work is carried out without the payment of a local authority grant. 3.1 Chargeable value directly attributable to adaptation work It is important to note that it is not the cost of the adaptation work that is to be deducted from the chargeable value of a property but only the amount (if any) by which the chargeable value has been increased as a result of the adaptation work, i.e. the amount of the chargeable value that is directly attributable to the adaptation work. Any such increase in chargeable value will almost certainly be less than the cost of the adaptation work. Even relatively substantial adaptations such as the construction of additional rooms may not have the effect of moving a property into a higher valuation band so there might not be any net effect for LPT purposes as a result of the adaptation work. However, in the case of properties with a chargeable value in excess of 1m, any increase in chargeable value attributable to adaptation work will affect the LPT liability because they are taxed on the basis of their actual chargeable value rather than the relevant valuation band. While the construction of, say, an extension to a property might be expected to increase the chargeable value of the property, other adaptation works such as the construction of access ramps or the fitting of stair-lifts and grab-rails are unlikely to add to a property s marketability and may even reduce the chargeable value. In most cases the level of expenditure involved is unlikely to have the end result of moving an adapted property s chargeable value into a lower valuation band. Revenue will not accept as a matter of course that the effect of having a property adapted will be to reduce the property s LPT liability. A liable person must establish the chargeable value of a property on completion of the adaptation work. This value must then be compared with the pre-adaptation chargeable value to identify any increase in the chargeable value that is directly attributable to the adaptation work. Where the adaptation work was carried out before the introduction of LPT, a liable person will not be in a position to establish the chargeable value on completion of the work and will not have to try and estimate what the position would have been at that time. Instead, the liable person will have to estimate on a current basis the effect of the adaptation work on the chargeable value, i.e. he or she will have to ask the questions what is the value of my house now? What would the value of my house be if I hadn t adapted it? 5

It is only where the adaptation work has increased the chargeable value of the adapted property- (a) where the chargeable value of the property before adaptation does not exceed 1m, to the extent that it moves into a higher valuation band, or (b) where the chargeable value of the property before adaptation exceeds 1m, that a liable person may apply to Revenue to have the increase in the chargeable value disregarded for LPT purposes. Where the adaptation work does not have such an effect, it is not relevant whether or not a local authority grant is paid as the tax relief does not apply. 3.2 Establishment of disability and necessity for adaptation work Where a local authority grant is paid, the relevant local authority satisfies itself about the applicant s eligibility for the grant and the reasonableness of the cost of the adaptation work. Where tax relief in the form of a reduction in the chargeable value of an adapted property is claimed, it is claimed on a self-assessment basis without the need to apply to Revenue for the relief. However, where a property is adapted without the payment of a local authority grant, a liable person, who meets the other required condition (see section 3.3 below), must apply to Revenue for the tax relief. The required application form is included in the Annex to these guidelines. The primary purpose of this form is to establish that the particular property is occupied by a disabled individual and that the property has been adapted solely for the purpose of making it more suitable for such occupation. 3.2.1 Establishment of disability To qualify for the tax relief an adapted property must be occupied by a disabled individual. The meaning of disability is taken from the Disability Act 2005 and means a substantial restriction in the capacity of an individual to carry on a profession, business or occupation in the State or to participate in social or cultural life in the State by reason of an enduring physical, sensory, mental health or intellectual impairment. A disability in its own right is not necessarily sufficient for eligibility for tax relief as the extent of the disability and the associated mobility difficulties must be taken into account in determining whether an individual requires a suitably adapted property. A disabled individual s general practitioner is required to provide certain information in relation to the individual s condition on the application form, focusing primarily on the extent of the individual s mobility. Thus, information must be provided in relation to: The nature and the extent of the disability; How long the disability is expected to continue; Whether the disability is progressive; The extent to which the person s disability affects his or her mobility; How mobile the disabled person is. 6

3.2.2 Establishment of necessity for adaptation work When deciding whether or not to pay a grant towards the cost of adapting a property, a local authority considers whether the proposed adaptation work is reasonably necessary for the purpose of making the property more suitable for occupation by a disabled individual. The purpose of adapting a property must be to increase or maintain the functional independence of a disabled individual. The adaptations must help to overcome the restrictions that arise as a result of the disability. Relief is not available for the carrying out of general improvements/maintenance works to a property or for work that is of general benefit to the household rather than specifically addressing the special needs of a disabled individual. The key question for the disabled individual is would I still need the particular adaptation if I did not have a disability? A disabled individual s general practitioner is required to explain on the application form why the adaptation work that was carried out was considered necessary. 3.3 Occupation of adapted property by disabled individual One of the conditions for eligibility for relief in cases where a grant is paid is that the disabled individual must occupy the property as his or her sole or main residence after the adaptation work is completed. This condition also applies where a grant is not paid. 3.4 Restriction on reduction in chargeable value The reduction in chargeable value as a result of the adaptation work is capped at the maximum grant that would have been payable under the relevant local authority scheme at the date the work is carried out. For this purpose, the maximum grant can be taken to be the amount shown in the following table. Maximum grant payable under local authority schemes Time work commenced Local authority scheme Property less than 12 months old Property more than 12 months old 1 March 1993 to 31 October 2007 2001 12,700 20,320 1 November 2007 to date 2007 14,500 30,000 The LPT valuation bands increase progressively by fixed amounts of 50,000 and the maximum specified amount under either of the local authority grant schemes is 30,000. Therefore, at most, it is only possible for work carried out on adapting a property to reduce the chargeable value of the adapted property by a single valuation band. A move from one band to the next lower band equates to an annual tax reduction of 90. A property that was valued at the upper end of a particular band before adaptation might move to the lower end of that band but would still incur the same LPT liability as before adaptation. 7

B. Exemption from the charge to LPT 4. Exemption for permanently and totally incapacitated individuals Section 10B of the Finance (Local Property Tax) Act 2012 (as amended) provides a full exemption for residential properties that are constructed or acquired because of their suitability for occupation by certain severely incapacitated individuals who have received a court or an Injuries Board award or for whom a public trust fund has been established. The exemption also applies to properties that have been adapted to make them suitable/more suitable for occupation by such individuals. The exemption applies to properties occupied by individuals who are permanently and totally incapacitated to such an extent that they are unable to maintain themselves and whose condition is so severe that it dictates the type of property that they can live in. Provided the other conditions of the relief are met (see section 2.2), the fact that a court or an Injuries Board award has not been received nor a public trust fund established will not prevent a specially acquired and/or adapted property from qualifying for the tax exemption. Relief will be allowed on an administrative basis, in line with the statement of the Minister for Finance, where the conditions described in sections 4.1 to 4.5 are met. 4.1 Total and permanent incapacity To be eligible for tax exemption, a property must be occupied by an individual who is permanently and totally incapacitated from maintaining himself or herself. This is a high threshold of incapacity. An individual must be incapacitated to the extent that he or she is unable to maintain himself or herself. Maintain in this context means to support oneself by earning an income from working. Total incapacity in this context means that the individual is not capable of earning a living from any kind of work. The incapacity must also be permanent, i.e. there must be no prospect of the individual recovering or of the condition improving to the extent that the individual becomes able to maintain himself or herself. It is not possible to provide a list of medical conditions that can be accepted automatically as meeting the requirements for relief. There are inevitably variations in the severity of many conditions which mean that an individual who has a mild form of a particular condition may not meet the requirements for the relief while someone with a severe form of the condition may do so. Ultimately, whether a property is eligible for LPT exemption will be determined by the extent of an individual s incapacity, whatever his or her underlying condition. Although elderly people above retirement age do not generally maintain themselves by working to earn an income, infirmity or reduced capacity that is attributable solely to old age and not to any underlying medical condition is not treated as permanent and total incapacity for the purposes of eligibility for the LPT exemption. 4.2 Establishment of incapacity The payment of a court award or an Injuries Board award involves an assessment of the severity of an individual s incapacity. Public trust funds tend to be established in the case of very severe incapacity. Following the payment of such an award or the establishment of a 8

public trust fund, the LPT exemption is claimed on a self-assessment basis without the need to apply to Revenue. Where an award is not received or a public trust fund is not established, the liable person in relation to the property for which an exemption is sought, and who satisfies the other required conditions for the LPT exemption (see sections 4.3, 4.4 and 4.5 below), must apply to Revenue for the exemption. The required application form is included in the Annex to these guidelines. The primary purpose of this form is to establish that the particular property is occupied by an individual who is permanently and totally incapacitated to the extent that he or she is incapable of maintaining himself or herself by working and earning an income and that the particular property has been acquired and/or adapted solely for the purpose of its suitability for such occupation. An incapacitated individual s general practitioner is required to provide certain information in relation to the person s condition on the application form, focusing primarily on the extent of the individual s incapacity/mobility. Thus, information must be provided in relation to: The nature and the extent of the incapacity; Whether the incapacity is permanent; The extent to which the individual s incapacity has affected his or her mobility; How mobile the incapacitated individual is. 4.3 Acquisition/adaptation of property and its suitability The occupation of the property as a sole or main residence of a person who is permanently and totally incapacitated is, of itself, not sufficient to qualify the property for exemption. The other conditions, viz. that the property must have been constructed or acquired because of its suitability for occupation by a permanently and totally incapacitated individual or adapted to make it more suitable for occupation by such an individual must also be met. The linking of the incapacity with the suitability for occupation requirement effectively means that the nature of the incapacity will invariably relate to the physical mobility of an individual and not to intellectual or sensory incapacity. For example, individuals who have certain sensory or intellectual disabilities may be capable of living in a normal property whereas individuals who have severe mobility difficulties may require a suitably adapted property. As the purpose of acquiring a particular property or adapting a property must be to facilitate its occupation by an incapacitated individual, exemption is not available where general improvements/maintenance works have been carried out or work that is of general benefit to the household rather than specifically addressing the special needs of an incapacitated individual. The key question is would it be possible for the incapacitated individual to occupy a normal property. 4.4 Expenditure on adaptations The cost of the adaptation work (not the value attributable to the adaptation work) when it is completed must exceed 25% of the chargeable value of the property before the adaptation work is carried out. A liable person should therefore establish the chargeable value of his or her property both before and after the work is carried out. In the case of adaptation work that was carried out before the introduction of LPT, a liable person is required to retrospectively 9

establish the chargeable value of the property that would have applied before the adaptation work was carried out. 4.5 Occupation by the incapacitated individual The incapacitated individual must occupy the property as his or her sole or main residence. 4.6 Incapacitated individuals under the age of 16 years In the case of incapacitated individuals who are under the age of 16 years, Revenue will accept that the test of permanent and total incapacity is met where the Department of Social Protection pays a Domiciliary Care Allowance 2. In order to qualify for Domiciliary Care Allowance a child must have a disability so severe that he or she needs care and attention and/or supervision substantially in excess of another child of the same age. This care and attention must be given by another person, almost all of the time, so that the child can deal with the activities of daily living. The child must be likely to require this level of care and attention for at least 12 months. The arrangements differ from the arrangements described in sections 4.1 to 4.5 above in two respects. Firstly, the necessary degree of incapacity is not established by reference to whether the individual is permanently and totally incapacitated to the extent that he or she is unable to maintain himself or herself by working and earning an income but, instead, by whether a Domiciliary Care Allowance is being paid. Secondly, a general practitioner is not required to provide information in relation to the child s condition. However, an occupational therapist is required to provide information on the extent to which the child s incapacity has affected his or her mobility and the reason why the particular property and/or adaptations were considered necessary. 5. Claiming LPT relief The new rules described in these guidelines are being applied retrospectively to 1 July 2013. This means that there will be some individuals who have already paid LPT in accordance with the current legislation and who are now entitled to a refund of some, or all, of the LPT paid. The amount of any refund will depend on whether the individual qualifies for a reduction in the chargeable value of his or her property or a full exemption from payment of LPT. Individuals who are eligible for either of the LPT reliefs should submit the relevant completed application form (included at the back of these guidelines) to the Revenue Commissioners, Local Property Tax Branch, PO Box 1, Limerick. Further information or assistance is available by contacting the LPT Helpline on 1890 200 255. Revenue will examine each claim in advance of refunding any overpayment and reserves the right to seek additional information if considered necessary before determining the validity of the claim. A false claim may result in the imposition of penalties under section 147 of the Finance (Local Property tax) Act 2012 (as amended). 2 Note: The Department of Social Protection does not pay a Domiciliary Care Allowance for children over the age of 16. 10

ANNEX Examples The following examples are intended to illustrate various aspects of the operation of the LPT reliefs. A. Reduction in chargeable value 1. Adaptation work reduces chargeable value Joe converted the sitting room in his house into a bathroom suitable for use by his disabled wife at a cost of 15,000. The conversion would have qualified for a local authority grant under the current scheme had Joe applied for a grant. Before the conversion he estimated the market value of his house at 160,000, i.e. in the valuation band 150,001 to 200,000. On completion of the work he estimated that the market value had fallen to 148,000. As a direct result of the adaptation work, the chargeable value of his house has moved into a lower valuation band, i.e. 100,001 to 150,000. Therefore, he does not come within the terms of the relief and no further reduction in the chargeable value can be claimed. 2. Adaptation work increases chargeable value but not by enough to change valuation band Janet extended her house at a cost of 50,000 to facilitate her elderly mother who has very limited mobility. As her house is more than 12 months old, she might have received the maximum available grant of 30,000 from her local authority under the current scheme towards the cost of the work had she been eligible to apply for a grant. Before the extension was built, she estimated the market value of her house at 110,000, i.e. in the valuation band 100,001 to 150,000. On completion of the work she estimated that the market value had risen to 130,000. However, as this increased value remains within the same valuation band of 100,001 to 150,000, Janet does not have to avail of the relief as her LPT liability has not increased. 3. Adaptation work increases chargeable value to the extent that it moves into a higher valuation band Gerry built an extension to his house for use as a bedroom by his handicapped daughter. He does not qualify for a Domiciliary Care Allowance. The cost of the extension, including fitting out, was 75,000. Gerry was not aware that a local authority grant would have been available for this work. If he had applied he might have received the maximum available grant of 30,000 under the 2007 scheme. Before the extension was built, he estimated the market value of his property at 240,000, i.e. in the valuation band 200,001 to 250,000. When valuing the house for LPT purposes, he estimates that the adaptation work has caused the market value of the property to increase to 275,000, which puts the chargeable value into the next higher valuation band of 250,001 to 300,000. Therefore, Gerry can reduce this higher chargeable value as the increase is directly attributable to the adaptation work. 11

However, there is a restriction on the amount by which he can reduce the chargeable value of the adapted property because the value attributable to the adaptation work of 35,000 is higher than the maximum grant that would have been payable under the local authority scheme which is 30,000. The reduced chargeable value is therefore 245,000 (i.e. 275,000 less 30,000). To avail of the tax relief, Gerry must submit the appropriate application form to Revenue. 4. Adaptation work increases chargeable value of property valued at over 1m Because of her disability, Margaret extended her two-storey house in 2012 so that she could live exclusively on the ground floor. She did not apply to a local authority for a grant because her income was above the means-test limit. She valued her house at 1,200,000 on 1 May 2014. She now estimates that the adaptation work was responsible for 40,000 of this value. If Revenue approves her application to have the chargeable value reduced, she can reduce her annual LPT liability by 75 (i.e. 30,000 @.25%). The reduction in chargeable value is capped at the lower of the value that is directly attributable to the adaptation work or the maximum local authority grant. The maximum local authority grant is 30,000 because the house is more than 12 months old and the adaptation work would have been carried out under the current local authority scheme. B. Exemption from the charge to LPT 5. Permanently incapacitated but able to maintain oneself Rose has been blind from birth and has had her house adapted in various ways to make it more suitable for her needs. Although Rose is permanently incapacitated, she is not totally incapacitated and she maintains herself by earning an income. She does not qualify for an LPT exemption regardless of whether or not she received an award from a court or from the Injuries Board. 6. Purchase of a suitable house James was involved in a serious car accident that left him totally and permanently incapacitated and unable to do work of any kind. He did not obtain any kind of compensation award. Before the accident, he lived on the 6 th floor of a building in a small apartment. This proved totally unsuitable for his wheelchair and the other specialised equipment that he needed after the accident. He had no option but to move out of the apartment. He sold it and purchased a bungalow that was suitable for his needs. To qualify for an exemption from LPT, James must submit the appropriate application form to Revenue in which his doctor must certify that he is totally and permanently incapacitated from maintaining himself and provide information in relation to James condition and his need to move to an alternative residence. 7. Adaptation work on an existing property Jim is quadriplegic as a result of a degenerative disease. His two-storey house was extensively adapted to make it suitable for occupation by himself and his wife, Joan. Most of the adaptation work was carried out on the ground floor to facilitate the installation of essential equipment such as a hospital bed, a large hoist, an industrial fan, a trolley table and airflow mattress pump. Special access to the house was also required because his specially designed 12

wheelchair/bed was longer and wider than a standard wheelchair. The second floor was adapted to make it suitable as living quarters for Joan. Joan engaged a property valuer who estimated that the chargeable value of the house for LPT purposes before the adaptation work was carried out in 2007 was 300,000. At 120,000, the cost of the adaptation work exceeds 25% of the chargeable value of the property before the work was carried out. To qualify for an exemption from LPT, they must submit the appropriate application form to Revenue in which Jim s doctor must certify that he is totally and permanently incapacitated from maintaining himself and provide information in relation to his condition and his need for the adaptations that were carried out on the house. 8. Domiciliary care allowance Michael and Emily s daughter Mary was born with a serious disability. They receive a domiciliary care allowance from the Department of Social Protection. They have not yet needed to adapt their house to make it more suitable for Mary but know that they will have to do so as her condition will deteriorate. Until they carry out adaptation work, they will not be exempt from LPT. When the adaptation work is carried out they may qualify for the exemption if the cost of the adaptation work exceeds 25% of the chargeable value of the property before the work was carried out. If they are still in receipt of the domiciliary care allowance, they will have to submit an application to Revenue but their doctor will not be required to certify that Mary is permanently and totally incapacitated from maintaining herself and to provide information in relation to her condition and her need for the adaptations that were carried out. However, an occupational therapist will be required to provide information on the extent to which Mary s incapacity has affected her mobility and the reason why the particular property and/or adaptations were considered necessary. 13

Form LPT6 Application for Reduction in Chargeable Value (for properties adapted for occupation by certain disabled persons) Before completing this application form, you should read Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals to establish if you are eligible for tax relief. These guidelines are available at www.revenue.ie in the LPT section of the website. You should note that your LPT liability can only be reduced where the adaptation work that you carried out on your property before 1 May 2013, to make it more suitable for occupation by the disabled person, had the effect of increasing the chargeable value of the adapted property to the extent that it moved into a higher LPT valuation band. If the adaptation work did not have this effect, you are not eligible for tax relief and should not complete and submit this application form. Examples explaining how this will apply are contained in section A of the Annex of the Guidelines. Name of liable person: (one person only) PPSN of liable person: Name of disabled person: (if not the liable person) Address of adapted property: Property ID of adapted property: Is the adapted property occupied by the disabled person as his or her sole or main residence? Description of adaptation work: (see note 1) Yes No Cost of adaptation work:,, When did the adaptation work start? D D / M M / Y Y Y Y Date of completion of adaptation work: / / D D M M Y Y Y Y RPC004573_EN_WB_L_1 Page 1

Chargeable value of adapted property at 1 May 2013: (see note 2) Chargeable value attributable to adaptation work: (see note 3),,,, DECLARATION I declare that all the particulars on this form are correct to the best of my knowledge and belief. Signature of liable person: Date: Phone No.: E-mail Address: Notes to completion of application form Note 1 Description of adaptation work : Provide a description of the construction/fitting out work that was carried out on the property for the purpose of making it more suitable for occupation by the disabled person. For further details, see section 3.2.2 of the Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Note 2 Chargeable value of adapted property at 1 May 2013 : This is the value that should have already been declared to Revenue for the property in respect of the first valuation date for LPT, which was 1 May 2013. This value determines the LPT payable for the years 2013, 2014, 2015 and 2016, regardless of any increase or decrease in the property s value over this period. Any adaptation work that was carried out after 1 May 2013 is not taken into account for valuation purposes until the next valuation date which is 1 November 2016. Note 3 Chargeable value attributable to adaptation work : This is not the cost of the adaptation work that was carried out but a measure of how the chargeable value of the property was affected by the adaptation work. You must establish how much of the chargeable value at 1 May 2013 that you declared for the property can be directly attributed to the adaptation work that was carried out. In other words, if the adaptation work increased the value of the property, by how much did it increase that value. Where the adaptation work was carried out before the introduction of LPT, you should estimate, as at 1 May 2013, the effect of the adaptation work on the chargeable value, that is, what was the value of my house on 1 May 2013? What would the value have been if I hadn t had the adaptation work carried out? The chargeable value that is attributable to the adaptation work must have been sufficient to have increased the chargeable value of the adapted property to the extent that it moved into a higher valuation band. If the adaptation work did not have this effect, you are not eligible for tax relief and should not complete and submit this application form. Where your property would have been valued for LPT purposes above 1m before the adaptation work and the adaptation work has increased the chargeable value, you may be eligible for tax relief. The maximum allowable reduction in your LPT liability (based on 2014 tax rates) is 90, which is the LPT payable for each additional valuation band. For further details, see section 3.1 and the examples in section A of the Annex of the Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Please send your application form to the Revenue Commissioners, LPT Branch, PO Box 1, Limerick. If you have any queries please call the LPT helpline on 1890 200 255. RPC004573_EN_WB_L_1 Page 2

Section to be completed by the Disabled Person s Doctor Nature and extent of disability: When did the condition become evident? D D / M M / Y Y Y Y How long do you expect the condition to continue? Indicate the extent to which the disabled person s condition has affected his or her mobility: State why the adaptation work was necessary and how it made the property more suitable for occupation by the disabled person: In relation to the disabled person s mobility, insert x where appropriate in the boxes below: Painful mobility Only able to walk using a walking aid Can leave their home unaided Capable of operating a stair-lift Wheelchair-user Confined to bed Can use stairs unaided Specify any other relevant indicator of lack of mobility: I have examined name of disabled person and certify to the best of my knowledge and belief that all of the information that I have provided is accurate. Name of doctor: (Block capitals) Signature of doctor: Date: Address of doctor: Phone No.: E-mail Address: RPC004573_EN_WB_L_1 Page 3

Form LPT7 Application for Exemption (for properties occupied by certain permanently and totally incapacitated persons) Before completing this application form, you should read Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals to establish if you are eligible for a tax exemption. These guidelines are available at www.revenue.ie in the LPT section of the website. Name of liable person: (one person only) PPSN of liable person: Name of incapacitated person: (if not liable person) Address of property: Property ID: Is the property occupied by the incapacitated person as his or her sole or main residence? Indicate whether property was constructed, purchased or adapted: (see note 1) Yes No Chargeable value of property at 1 May 2013: (see note 2),, Where a property has been adapted Description of adaptation work: (see note 3) Cost of adaptation work: Chargeable value of property before adaptation work: (see note 4) Date of completion of adaptation work:,,,, D D / M M / Y Y Y Y DECLARATION I declare that all the particulars on this form are correct to the best of my knowledge and belief. Signature of liable person: Date: Phone No.: E-mail Address: RPC004575_EN_WB_L_1 Page 1

Notes to completion of application form Note 1 Indicate whether property was constructed, purchased or adapted : The exemption may apply where the property was constructed or purchased, or where an existing property was adapted. You should indicate whichever applies. The property must have been constructed or purchased because of its suitability for occupation (and/or suitability for adaptation for occupation) by a permanently and totally incapacitated person. Where an existing property was adapted, the adaptation work must have been carried out for the purpose of making the property more suitable for occupation by a permanently and totally incapacitated person. For further details, see section 4.3 of the Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Note 2 Chargeable value of property at 1 May 2013 : This is the value that should have already been declared to Revenue for the property in respect of the first valuation date for LPT, which was 1 May 2013. This value determines the LPT payable for the years 2013, 2014, 2015 and 2016, regardless of any increase or decrease in the property s value over this period. Note 3 Description of adaptation work : Provide a description of the construction/fitting out work that was carried out on the property for the purpose of making it more suitable for occupation by the permanently and totally incapacitated person. For further details, see section 4.3 of the Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Note 4 Chargeable value of property before adaptation work : You must estimate the chargeable value of the property that would have applied before the adaptation work was carried out. This will enable you to confirm whether the cost of the adaptation work (when completed) exceeded 25% of this estimated chargeable value (to qualify for the exemption, the cost must exceed 25% of this estimated chargeable value). For example, if you estimate that the chargeable value of the property would have been 300,000 before the adaptation work was carried out and the adaptation work cost 120,000, then the cost of the work exceeded 25% of the chargeable value estimated by you. For further details, see section 4.4 and example 7 in Annex 1 of the Guidelines on Local Property Tax Relief for Disabled/ Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Please send your application form to the Revenue Commissioners, LPT Branch, PO Box 1, Limerick. If you have any queries please call the LPT helpline on 1890 200 255. RPC004575_EN_WB_L_1 Page 2

Section to be completed by the Incapacitated Person s Doctor Nature and extent of incapacity: When did the condition become evident? D D / M M / Y Y Y Y Is the condition permanent? Yes No Indicate the extent to which the incapacitated person s condition has affected his or her mobility: Why do you consider the person to be incapacitated to the extent that he or she is unable, and is likely to always be unable, to do any kind of paid work? Why is this property suitable for occupation by the incapacitated person? Where the property was adapted, how did the adaptation work make it more suitable? In relation to the individual s incapacity insert x where appropriate in the boxes below: Unable to leave their home unaided Wheelchair-user Confined to bed Specify any other relevant indicator of incapacity: I have examined name of incapacitated person and certify to the best of my knowledge and belief that all of the information that I have provided is accurate. Name of doctor: (Block capitals) Signature of doctor: Date: Address of doctor: Phone No.: E-mail Address: RPC004575_EN_WB_L_1 Page 3

Form LPT8 Application for Exemption (for properties occupied by certain permanently and totally incapacitated children for whom the Department of Social Protection pay a Domiciliary Care Allowance) Before completing this application form, you should read Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals to establish if you are eligible for a tax exemption. These guidelines are available at www.revenue.ie in the LPT section of the website. Name of liable person: (one person only) PPSN of liable person: Name of incapacitated child: PPSN of incapacitated child: Address of property: Property ID: Does the Department of Social Protection pay a Domiciliary Care Allowance in respect of the incapacitated child? (see note 1) Is the property occupied by the incapacitated child as his or her sole or main residence? Indicate whether property was constructed, purchased or adapted: (see note 2) Yes Yes No No Chargeable value of property at 1 May 2013: (see note 3),, Where a property has been adapted Description of adaptation work: (see note 4) Cost of adaptation work: Chargeable value of property before adaptation work: (see note 5) Date of completion of adaptation work:,,,, D D / M M / Y Y Y Y DECLARATION I declare that all the particulars on this form are correct to the best of my knowledge and belief. Signature of liable person: Date: Phone No.: E-mail Address: RPC004684_EN_WB_L_1 Page 1

Notes to completion of application form Note 1: Does the Department of Social Protection pay a Domiciliary Care Allowance in respect of the incapacitated child? : The Department of Social Protection does not pay a Domiciliary Care Allowance for children over the age of 16. If a Domiciliary Care Allowance is not paid in respect of the incapacitated child you should complete Form LPT7 instead of this form. Note 2 Indicate whether property was constructed, purchased or adapted : The exemption may apply where the property was constructed or purchased, or where an existing property was adapted. You should indicate whichever applies. The property must have been constructed or purchased because of its suitability for occupation (and/or suitability for adaptation for occupation) by a permanently and totally incapacitated person. Where an existing property was adapted, the adaptation work must have been carried out for the purpose of making the property more suitable for occupation by a permanently and totally incapacitated person. For further details, see section 4.3 of the Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Note 3 Chargeable value of property at 1 May 2013 : This is the value that should have already been declared to Revenue for the property in respect of the first valuation date for LPT, which was 1 May 2013. This value determines the LPT payable for the years 2013, 2014, 2015 and 2016, regardless of any increase or decrease in the property s value over this period. Note 4 Description of adaptation work : Provide a description of the construction/fitting out work that was carried out on the property for the purpose of making it more suitable for occupation by the permanently and totally incapacitated person. For further details, see section 4.3 of the Guidelines on Local Property Tax Relief for Disabled/Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Note 5 Chargeable value of property before adaptation work : You must estimate the chargeable value of the property that would have applied before the adaptation work was carried out. This will enable you to confirm whether the cost of the adaptation work (when completed) exceeded 25% of this estimated chargeable value (to qualify for the exemption, the cost must exceed 25% of this estimated chargeable value). For example, if you estimate that the chargeable value of the property would have been 300,000 before the adaptation work was carried out and the adaptation work cost 120,000, then the cost of the work exceeded 25% of the chargeable value estimated by you. For further details, see section 4.4 and example 7 in Annex 1 of the Guidelines on Local Property Tax Relief for Disabled/ Incapacitated Individuals at www.revenue.ie in the LPT section of the website. Please send your application form to the Revenue Commissioners, LPT Branch, PO Box 1, Limerick. If you have any queries please call the LPT helpline on 1890 200 255. RPC004684_EN_WB_L_1 Page 2