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The NPPR (Non Principal Private Residence) Charge – Are You Up To Date?

Jun 25, 2014
NPPR – Non Principal Private Residence was introduced in 2009 by the then minister for finance, Mr. Brian Linehan. As the name suggests, the NPPR charge was due on properties which were not the owners principal private residence, with the proceeds used to fund local authority services. While many people have submitted and paid other residential property taxes such as the Household Charge and the Local Property Tax (LPT) it is thought that there are still a significant number of individuals who have not yet submitted or paid their NPPR liabilities. 1. Understanding the various Property taxes The Government have introduced a number of property taxes since 2009. However, since 2014 these taxes have been replaced by the Local Property Tax (LPT). To give you an understanding of the various property taxes imposed by the Revenue Commissioners from 2009-2014 we have prepared the following summary:
Year NPPR Household Charge LPT
2009 Yes
2010 Yes
2011 Yes
2012 Yes Yes
2013 Yes Yes
2014 Yes
While the Household Charge and the LPT are collected by the Revenue Commissioners, NPPR is collected by the local authorities. This is believed to be the main reason for the high level of non compliance, as local authorities do not have the same level of resources or enforcement options as the Revenue Commissioners. Nonetheless, the onus is on you, the property owner to come forward and pay the NPPR charge to the local authority in which your property is located. 2. Bringing your NPPR up to date As outlined above the collection of NPPR by the local authorities has not been as successful as the other property taxes. NPPR was due to be paid by 30th September for 2009 initially and 30th June in each of the years 2010 to 2013. If you had not made payment by the due dates a late filing fee of €20 per month is applied and would continue to accumulate each month until your liabilities are brought up to date. In a bid to bring the NPPR liabilities up to date the Minister for the Environment, Community and Local Government, Mr. Phil Hogan recently made an announcement to encourage property owners to “regularise” their payments before 31st August 2014. Mr. Hogan announced that for the period from 2nd March 2014 to 31st August 2014 late filing penalties would be frozen. During this “grace period” the Minister is encouraging property owners to contact their local authorities with a view to either paying their liabilities in full or agreeing settlement terms. If you have not paid your liability since 2009 a penalty of €20 per month will accumulate and will give rise to a significant total charge. For example, if you have a liability due since 2009 and you agree payment terms within the grace period, i.e. 31st August 2014 your liability will amount to €4,220, per property. However, you fail to make arrangements for the payment of your NPPR before 31st August 2014 your liability will automatically increase to €7,230 per property, as the penalties which were frozen during the grace period will be reversed. The following table provides a summary of NPPR and penalties due on a property since 2009.
Charge Due at Due at Due Due from Due at
unpaid 1st Jan 1st Feb 1st Mar 2nd Mar to 1st Sept
from 2014 2014 2014 31st Aug '14 2014
2009 1,220 1,240 1,260 1,260 2,070
2010 1,060 1,080 1,100 1,100 1,830
2011 820 840 860 860 1,470
2012 580 600 620 620 1,110
2013 340 360 380 380 750
Total 4,020 4,120 4.220 4,220 7,230
3. How to bring your NPPR up to date If you are not currently fully compliant for NPPR, the easiest way to bring your NPPR up to date is by registering your property online through the NPPR website at www.nppr.ie. Alternatively you can complete a paper return. However, a €10 handling fee will be payable to the local authority for the processing of paper returns. It must be noted that NPPR is payable to the local authority in which the property is located. For example, if you reside in Dublin, but own a second property in Galway, the NPPR on that second property is payable to the local authority in Galway. 4. Exemptions from NPPR There are a number of properties which are exempt from NPPR. These properties include:
  • A mobile home, caravan or vehicle
  • A newly constructed residential building that is unsold and has not yet been used as a dwelling, provided it forms part of the trading stock of a business
  • A residential property owned by an approved charity
  • A residential property occupied under a shared ownership arrangement with a housing authority or a building let by a housing authority, voluntary housing body or the HSE
  • A residential property held in a discretionary trust which is an approved charity
  • A residential property occupied rent free by a relative of the owner of the property provided the said residential property is located no more than 2km from the PPR of the owner. This would include a granny flat and other similar residences
  • A residential premises owned by a person who lives elsewhere by reason of physical or mental incapacity
  • A building liable to commercial rates
  • Where a decree of divorce or judicial separation has been granted and a spouse owns the PPR of the other spouse, then he/she will not be liable to the charge in respect of that property.
While the local authorities may not have the same powers as the Revenue Commissioners when it comes to enforcement, it is important to ensure all charges and penalties on your properties are paid in full. Non payment may lead to difficulties when selling your property, as the buyer would become liable for any charges outstanding. If you require assistance in bringing your NPPR up to date with your local authority please do not hesitate to contact a member of our team.
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