Q I am living abroad and have been renting since 2009 in various locations in Ireland and the UK which meant I could not live in the one and only property I own anywhere – in Dublin.
It was entirely unclear to me whether the non-principal private residence (NPPR) tax applied to me. As it was initially referred to as a 'second home tax' I did not pay it. I was unaware of the exorbitant charges that applied to late fees. I was only accidentally aware of it following an article in The Irish Times emigrant blog last week. I paid the local property tax (LPT), but did not get a bill for NPPR.
However I was so frightened by the charges I paid this ‘second home tax’ yesterday which has sucked up half my savings. I would be most grateful (as would thousands living abroad) if you could clarify whether NPPR should/does apply to people with only one property but renting abroad or even in Ireland due to work?
A All property taxes relate to the location of the property and not the owner, so in short the NPPR does apply to this scenario. The phrase “second home charge” would lead you to believe it was for a second home, or holiday home but it related to all non-principal private residences.
The legislation governing this tax is called the Local Government (Charges) Act 2009, as amended by the Local Government (Household Charge) Act 2011, and it introduced a €200 annual charge on non-principal private residences for the years 2009-2013, payable by the owner of that property to the local authority in whose area the property is located.
Revenue deems that you can only have one principal residence (the house that you normally live in, whether you rent it or own it). Therefore if you own only one house but do not live in it, it is a non-principal private residence and therefore liable for the tax. Severe penalties accrue for non-payment, and if you had never paid the charge the full amount owing now is an alarming €7,230, and is capped at this amount. Late payment charges not paid will be registered as a charge against that property for 12 years, or until the amount owing is paid. If you wish to sell the property within that time, the full amount will need to be cleared before the sale can be completed.
Anecdotally, some local authorities were lending a sympathetic ear to people who were non-resident for the period of the charge, but as you have now paid it, I cannot say if any form of refund can now be claimed.
Another point of clarification is necessary. The €100 annual Household Charge due in 2012 which applied to most residential properties was also liable in addition to the NPPR. If the €100 was not paid in 2012, the amount owing is now €200 and this is to be added to your LPT liability. You are liable for this and, as you were abroad, you may not be aware of this fact and I recommend you contact Revenue to ensure you are being assessed for the correct amount.
Finally, if your property is rented you will need tax advice on the treatment of any rental income received from your property. Different arrangements apply when a landlord is non-resident, and generally 20 per cent of the rent must be deducted at source and forwarded to Revenue.
Edward Carey is a residential surveyor and a member of the Society of Chartered Surveyors Ireland Residential Agency Professional Group
Where is dirt from?
Q You are my last resort to find a solution to the continuous build-up of black dust on most of the (beige) carpets situated mainly on the three flights of stairs and the ground floor lounge. Internet searches tell me it is 'filtration soiling'. Enquiries to carpet cleaning companies are always met with negative responses. They know they cannot assist.
We have all heard that to avoid a dust build-up on ground floor carpets, it is essential to lay newspapers underneath etc. But, when the dust appears at the edges of flights of stairs and landings, one begins to wonder! I enclose a 26-second video to give you an impression of what I am trying to explain. I hope you can assist.
A From review of the short video provided and based on what you describe it’s clear your carpets are suffering from filtration soiling. Filtration soiling occurs when air is being forced into a room or hallway at a higher rate than it can escape. As a result the air then seeks alternative escape routes such as gaps under doors, at the side of stairs or between floor boards.
As the concentrated flow of air is forced through these gaps, it passes through the carpet, which acts as a filter. Any pollutants present in the air are then trapped by the carpet. It is these pollutants that turn the carpet grey or black along the line of the gap. The level of soiling is dependent upon the volume of airflow and the level of pollutants in the air.
Common pollutants that can contribute to the problem include smoke from cigarettes and candles, cooking oils, fireplace ash, soot from chimneys, external exhaust fumes or building up of dust within ventilation systems. I recently completed an inspection of a property located on a busy traffic route which has heavy internal soiling and staining as a result of the volume of exhaust fumes and carbon entering via the windows.
The pattern of staining in your hallway appears to correspond with standard construction joints or gaps between edges of stairs, along a partition wall line and also individual floor boards.
To alleviate the soiling of carpets a number of measures can be taken. Increase fresh air circulation within your house to allow existing pollutants to vent externally. Reduce the creation of new pollutants which can occur via smoking, candle burning and oil cooking.
Finally, seal existing gaps underneath the carpet. This will involve lifting the carpet and sealing each gap with a flexible sealant. The location of gaps should be easily identified by existing carpet staining.
It is also advised to appoint a contract cleaner to remove the existing staining. This will allow you to confirm that the work has been successful; future staining should be negligible if not absent altogether.
Andrew Ramsey is a chartered building surveyor and is chairman of the Building Surveying Professional Group of the Society of Chartered Surveyors Ireland (SCSI)
Is gazumping legal?
Q My partner and I have been looking for a home in Dublin for a number of months. Last week we went sale agreed on a house and paid the booking deposit. Yesterday we were contacted by the estate agent who said that he had received a higher offer and that the vendor had agreed to accept the offer despite having already agreed the sale with us.
Does the law provide any protection in this scenario? And will we get our deposit back in full?
A I am sorry to hear that you have had the unfortunate experience of being gazumped. All negotiations, correspondence and deposits taken before contracts are exchanged are subject to contract. You will most likely see that your booking deposit receipt will have “subject to contract / contract denied” written at the top. This means that neither the purchaser nor the vendor is contractually committed.
For you, this means that if, for example, your building surveyor says that you ought not to proceed, you can pull out of the purchase and get your deposit back. Similarly, however, the vendor is not contractually committed and can decide not to proceed with the sale.
The SCSI published professional guidance for their members called the Real Estate Agency Practice Manual and this guidance note states that members must, subject to their client's overriding instructions, change any signs on the property or other marketing material including internet sites to read "Sale Agreed" and cease marketing the property and cease showing the property to new prospects once instructed to do so by the vendor.
Notwithstanding this, if a higher offer is made for the property by another party prior to the formal exchange of contracts, agents are legally bound to advise their client and take the client’s instructions. You are entitled to an immediate and full return of your deposit.
Simon Stokes is a residential surveyor and chairman of the Society of Chartered Surveyors Ireland (SCSI) Residential Agency Professional Group
