Background
The Non Principal Private Residence charge was introduced by The Local Government (Charges) Act 2009 as amended by the Local Government (Household Charge) Act 2011. This annual charge existed between 2009 and 2013 and was imposed on residential property where the property was not the owner's only or main residence during the applicable years. The liability dates for the charges were 31 July for 2009 and 31 March for 2010 and subsequent years.
The Non Principal Private Residence charge was introduced by The Local Government (Charges) Act 2009 as amended by the Local Government (Household Charge) Act 2011. This annual charge existed between 2009 and 2013 and was imposed on residential property where the property was not the owner's only or main residence during the applicable years. The liability dates for the charges were 31 July for 2009 and 31 March for 2010 and subsequent years.
In order to sell their property, a vendor is required to provide either a Certificate of Discharge or a Certificate of Exemption to the NPPR charge. The legislation provides for a number of exemptions to the charge under section 4. A property is exempt where it is the owner's principal private residence or where a person moves house and owns 2 properties for a short period of time. Other exemptions include circumstances where a person resides elsewhere due to an illness or where property is held jointly after a divorce or separation agreement.
Under the 2009 Act, as amended by the Local Government (Household Charge) Act 2011, the charges are set at €200.00 per year but significant penalties and late payment fees are imposed if the charges were not paid.
Unpaid NPPR a Charge on Property for 12 Years
Prior to 1 August 2021, where the NPPR charge failed to be discharged for the imposed years, then the accumulated charges and late payment fees amounted to €7,230.00. Under section 7 of the Act, any charge or late payment fee due and unpaid by the owner remains a charge on the property for a period of 12 years.
The charge and late payment fees for the year 2009 expired on 31 July 2021. Therefore, since the 01 August 2021 applicable owners are no longer required to discharge the 2009 charge and some Local Authorities are no longer even accepting payment for the 2009 charge and associated late payment fees. In addition, where the 2009 charge failed to be discharged, the charge and any late payment fee due in respect of 2009 will no longer remain a charge on applicable property.
The NPPR charge and late payment fees for the year 2010 will expire on 31 March 2022 and on the 1 April 2022, the charge any late payment fee due will no longer remain a charge on applicable property.
The 2011 charge will expire on 31 March 2023 and so on. It remains to be seen if this will result in some vendors delaying sales in order to benefit from the potential "savings" where unpaid NPPR for a particular year will no longer be a charge on property.
Written by Adam Duggan.