The Local Government (Charges) Act 2009, as amended by the Local Government (Household Charge) Act 2011, introduced a €200 annual charge in respect of all residential property not used as the owner’s sole or main residence, known as a Non Principal Private Residence (NPPR). Liability to pay the charge was determined on the basis of ownership of the property in question on a single day each year. This date, which was called the “liability date”, was 31 July for 2009 and was 31 March in 2010, 2011, 2012 and 2013. The charge was required to be paid within three months of the liability date in order to avoid late payment fees.
This charge was abolished at end of December 2013 and no longer applies.
Outstanding charge liabilities
Part 12 of the Local Government Reform Act 2014 provided for the repeal of the Local Government (Charges) Act 2009 governing the NPPR charge, and dealt with the collection of undischarged liabilities.
The legislation did not provide for the primary liability for the annual NPPR charge to be reduced or waived.
Section 74 of the Local Government Reform Act 2014 provided for a period, which ran from 2 March 2014 to 31 August 2014, during which time no new late payment penalties were applied to existing NPPR liabilities. This was an opportunity for owners to agree payment terms with local authorities.
If payment was not made in full by 31 August 2014 or if settlement terms were not agreed by that date, an additional late payment fee of €120 per liability date was applied on 1 September 2014. In addition, the entire NPPR liability was increased by a factor of 50% and then frozen. For example, the total liability and late payment fees in respect of a property that was liable for the NPPR charge for five years from 2009 to 2013, increased from €4,220 up to €7,230 on the expiry of the grace period on 1 September 2014.
For further information or to make payments please see www.nppr.ie
Certificate of Exemption/Discharge
A person may apply to the relevant local authority for a Certificate of Exemption, which will state that no charge was payable in respect of a specific property and specify the reason(s) why. The local authority is entitled to whatever information it requires in order to be satisfied that a property is exempt.
Similarly, a person may apply for a Certificate of Discharge in respect of a particular year confirming that all charges and fees relating to a particular property have been paid.
Both Certificates of Discharge and/or Certificates of Exemption, as applicable, are required to be given by a vendor of a property to a purchaser in respect of each year since the previous sale of a property.
Expiry of NPPR Liability and Charge on Property
The NPPR charge and late payment fee relating to 2009 and the associated charge on a property is due to expire after 31 July 2021.
Each charge which became a charge on property is applied for its own 12 year period, measurable from the liability date. The liability and charge on property in respect of the 2009 NPPR charge, therefore, expires after 31 July 2021.
From 1 August 2021, the amount of NPPR fees and penalties a vendor is required to pay in order to sell a property which was an NPPR, reduces every year until the liability and charge on the property expires completely on 1 April 2025.