In addition to their questions and answers series, Deirdre Jennings from the Taxation Department at O’Donnovan Caulfield and Lavin looks at the NPPR charge.
Q. I have recently been told that I am to inherit a residential property from my late Uncle. Will I be liable to the Non Principle Private Residence (NPPR) charge even though Probate has not yet commenced?
Dear Reader,
Yes, you may be liable for the NPPR charge once probate is finalised and you become the owner of the property.
If your uncle used this property as his sole residence the NPPR charge would not have applied to him. There is also an exemption if your uncle did not reside in the house but resided in a nursing home for medical reasons.
If the property was liable to the NPPR (for example if it was a rented property) your uncle would have been liable for the NPPR charge. If at the time of your uncle’s death, an NPPR charge and/or late payment fees were due, the clock will now stop accruing charges.
This is provided that the personal representative of your late uncle discharges the full amount of the NPPR charge and late payment fees due up to the date of his death, within 3 months of the date of the grant of representation to his estate.
In the case where the charge was not previously paid since its introduction in 2009, a substantial liability might now arise on the estate; the current charge with interest is in excess of €2,000.
Once the property is transferred into your name you will then be liable to the NPPR charge if you do not solely reside in this property.
This column is a readers’ service and is not intended to replace professional advice.
