Homeowners in insolvency can defer the property tax

Homeowners in insolvency can defer the property tax

The Finance Minister Michael Noonan has told the Dáil that homeowners who enter into insolvency arrangements with their banks will be able to defer payment of the new property tax.

He made the remarks last week as he introduced new legislation amending the property tax bill introduced last year.

The bill provides for tax exemptions for pyrite-affected homes, and for properties owned by charities.

Minister Noonan also told the Dáil that homeowners who are engaged in insolvency or debt-settlement arrangements with their banks may be able to defer payment of the property tax.

However, where someone who has declared personal insolvency defers the payment, the tax will have to be paid with interest once the person becomes solvent again.

Minister Noonan also defended imposing a so-called “snitch clause” that forces people to declare to Revenue if they become aware that a house was under-valued.

“Contrary to media coverage and opposition commentary, the new provision offers a level of protection to purchasers,” he said.

“In the absence of this amendment, the deliberate and serious under-valuation of a property would be binding on the new owner where a property is sold before the next valuation date.”

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