Residential Property Tax


Residential property Tax was:

  • an annual tax,
  • chargeable on the market value of residential property,
  • owned and occupied on a valuation date, which is the 5th of April each year.

The tax was charged at 1.5% on the excess of the market value of all residential properties of a person over an exemption limit and is payable provided the income of the household exceeds an income exemption limit. RPT was abolished with effect from the 5th April 1997.

The exemption limits for valuation date 5 April, 1996 were:

Market Value £101,000
Income  £30,100

Marginal Relief

Marginal relief applies where the gross household income for the tax year 1995/96 exceeded £30,100 and did not exceed £40,100 (£45,100 for owner(s) aged 65 or over on 5 April, 1996)

How to calculate Marginal Relief

(a) Aged Under 65

Marginal relief is granted by applying the formula:

T x (A – E) / 10,000


  • T: is the gross tax payable (before marginal Relief and Child Relief)
  • A: is the amount of the gross household income (which is rounded down to the nearest £1,000)
  • E: is the income exemption limit (£30,100 in 1996)

(b) Aged 65 or over

Marginal relief is granted by applying the formula

T x (A – E) / 15,000

Child Relief

The tax payable is reduced by 10% in respect of each dependent child.

A dependent child must:

  • be under the age of 16, or if over 16, be in full-time education, and
  • have an income of less than £720 (£1,320 in the case of an incapacitated child) in the tax year 1995/96.

How to calculate Child Relief

You reduce the tax due by 10% for each dependent child.