Finance (Local Property Tax) Act 2012 section 149

Interest on overdue tax

Section 149 sets out how interest is charged on unpaid local property tax (LPT) and the formula used to calculate that interest.

• Interest accrues daily on unpaid LPT from the date it becomes payable until the date of payment, applying to both liable persons and those directed by Revenue to deduct LPT (such as employers).
• The interest is calculated using the formula T × D × R, where T is the unpaid tax, D is the number of days it remains unpaid, and R is the daily interest rate of 0.0219%.
• Interest on overdue LPT is not allowable as a deduction for income tax or corporation tax purposes and is collected in the same manner as LPT itself.
• No interest is charged where a liable person selects a payment method in their return and pays the self-assessed LPT amount in accordance with that method.