Finance (Local Property Tax) Act 2012 section 131

Meaning of deferral

Section 131 defines what deferral of local property tax (LPT) means, the interest that applies to deferred amounts, the conditions that must be met for a valid deferral claim, and the procedural requirements for making such a claim.

• Where a valid deferral claim is made, the LPT is treated as not payable until a relevant event occurs, such as the sale of the property or the completion of an insolvency arrangement.
• Interest is charged on the deferred amount at a daily rate of 0.008% from the date the amount becomes payable until it is actually paid, and any reference to the deferred amount includes this accrued interest.
• A deferral claim is valid only if the conditions set out in sections 132, 133, 133A, or 133B are satisfied — these relate to income thresholds, mortgage payment adjustments, personal representatives, and personal insolvency arrangements respectively.
• The deferral claim must be made in writing, and where a return is required for the relevant liability date, the claim must be included in that return.