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Calling all Landlords – Are you entitled to a tax refund in respect of NPPR charges paid in 2013?

NPPR chargeAs you may be aware, Revenue lost a High Court challenge last November in relation to the deductibility of the Non-Principal Private Residence (NPPR) charge against rental income.

Prior to the High Court ruling, Revenue’s stated position was that the NPPR charge was not deductible on the basis that the charge was not a “rate levied by a local authority”. Revenue argued that a national charge collected locally was distinct from a local authority rate such that the NPPR charge was distinguishable from commercial rates. However, the High Court ruled that monies collected from the NPPR charge were directed locally rather than centrally and therefore were similar to ordinary rates charged by a local authority.

On foot of the High Court ruling, taxpayers who were in receipt of rental income in 2013 may be entitled to amend their tax return for 2013 to include a deduction in respect of the NPPR charge paid in 2013. The inclusion of a deduction for NPPR should give rise to a refund of tax paid or an increase in rental losses carried forward. Refunds will not be available for years prior to 2013 due to the four-year time limit for claiming repayments of tax.

It should be noted that Revenue have appealed the High Court decision to the Court of Appeal and therefore repayment claims will not be processed pending the outcome of the appeal.

In order to submit a protective refund claim for 2013, a notification form (click here) should be completed and forwarded to Revenue before 31 December 2017 using Revenue’s MyEnquiries portal.

If you require any assistance in relation to submitting a refund claim for 2013 before the 31 December deadline, please do not hesitate to contact us.

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