Finance (Local Property Tax) Act 2012 section 133

Income threshold increased by mortgage payments

Section 133 allows liable persons with a mortgage on their main residence to increase the income thresholds for LPT deferral by 80% of their mortgage interest payments.

• The income thresholds for LPT deferral (€18,000 single / €30,000 couple) can be increased where the property is the liable person's sole or main residence and is subject to a mortgage.
• The increase is equal to 80% of the mortgage interest payments reasonably expected to be made before the end of the relevant year.
• This effectively means that individuals with significant mortgage interest costs can qualify for deferral even if their gross income exceeds the standard thresholds.
• For years from 2021 onwards, this mortgage interest uplift only applies if it was already being claimed for a year before 1 January 2021 — no new claims are permitted from that date.