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Dublin: 6 °C Friday 19 December, 2014

Caught for the second home tax? This information could save you €3,000

Those in dire straits may be able to negotiate with local councils by Friday – but after that the penalties jump massively.

Image: possible via Shutterstock

THOSE WITH A second property who had not paid the Non-Principal Private Residence (NPPR) levy may have been panicked this week to learn that the deadline for late payments was fast approaching.

There is some breathing space, however, if a debtor is genuinely hard-up. The Local Government Management Agency (LGMA) has said this morning that those in dire straits may be able to negotiate payment terms with their local authority – as long as they do so by this Friday.

The cut-off date is worth noting – at the moment, those who did not pay the tax over the five years in which it was operational (2009 to 2013 inclusive) are liable for €4,220 in late payment penalties.

From Monday, this will jump by over €3,000 to €7,230. The sum owed is then frozen at that point, according to the NPPR.

What to do

Speaking on RTÉ Radio One’s Morning Ireland, a representative of LGMA said that there are conditions attached to negotiating with your local council on your current debt. For one thing, you’ll still have to pay what you owe at some stage – it’s just the terms and time of repayment may be up for negotiation.

The spokesperson also said that those claiming this break will probably be asked to prove their inability to pay immediately by showing bank statements and other financial information.

Not all of those liable for unpaid NPPR charges are liable for the whole five years of the charge. Some may have paid for a portion of the years but not for all. These people are also facing a deadline of this Friday to stump up the remainder.

The NPPR charge was abandoned at the end of 2013 – there is none for 2014. Those wishing to make payments need to create an account – this can be done online here.

Bonus note: You still have to pay the Local Property Tax charge on all properties in 2013 and 2014.

One landlord paid over €80,000 for ‘second’ home tax in 2011>

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