Are inherited homes liable to property tax?
Q Myself and 22 relatives inherited an aunt’s house as she died intestate in 2008. The property has been sold and the cheque received by our solicitors. He advises that he has to pay property tax as the property has been empty for the past three years. Normally, we would be liable for inheritance tax, but this does not apply as the amounts are too small. The property attracts probate tax but I cannot see how property tax applies. This tax was designed for second homes and investment properties. This was a family home until my aunt died and was empty until it was sold.
A We take it that when you talk about “property tax” you are referring to the NPPR levy – €200 per annum on non-principal private property. According to Blackrock solicitor Pat Igoe, as your late aunt’s house has been a vacant residential property for some time that was, during that time, not a principal private residence, then it would attract the €200 per annum levy. So your solicitor is correct. Although when divided among the 23 of you it would be a relatively small sum. Igoe spotted a couple of other issues in your letter that you would be advised to double check. Probate tax of 2 per cent of the estate of a deceased person is abolished. It applied, and remains applicable, only in respect of the estates of people who died on or after June 18th, 1993 and before December 6th, 2000. It is not applicable in respect of your aunt’s death. It may be applicable in respect of a prior death on title between June 18th, 1993 and December 6th, 2000 such as, perhaps, the spouse of the aunt, and this should be checked with the solicitor. He also suggests that you should confirm individually that Capital Acquisitions Tax does not apply insofar as you are all under the threshold. He suggests you should confirm individually that you have not received previous gifts that might leave you individually liable to CAT.
My landlord is selling up – should I buy?
Q My landlord has advised me that he is going to put the apartment on the market in September and offered me first refusal at a preferential rate. Can I have the apartment valued even if I am only renting or how do I go about it?
A Any local estate agent will be able to give you a rough estimate on the value of the apartment – just phone them and ask. If there is one for sale in your block don’t take the asking price as a valuation – it’s an asking price and the seller will in all probability have to take less. You are very much in the driving seat here so take your time. If it is a one-bedroom apartment, don’t give the landlord’s proposal another thought – it’s unlikely you’ll get a mortgage and you’d be better waiting until a two bed comes available in your development. If he puts it on the market in September he will in all likelihood have to give you a rent reduction if you are going to facilitate viewings; the apartment will take ages to sell and if you are still keen after it has been on the market for six months then you can go in and make your offer.
Your questions
Send your queries to Property questions, The Irish Times, The Irish Times Building, 24-28 Tara Street, Dublin 2 or e-mail propertyquestions@irishtimes.com. This column is a readers' service and is not intended to replace professional advice.
