New Household Charge

The Household Charge is an annual charge of €100 payable from 2012 by owners of residential property for each property held. Where the property is divided into multiple units, the charge applies to each individual unit.

Owners of residential property on the liability date of 1st of January 2012 are liable to pay the household charge by 31st of March.

There are a number of exemptions from the liability including residential properties:

• That are part of the trading stock of a business and have not been sold or been the source of any income since construction,
• Vested in a Minister of the Government or the Health Service Executive,
• Vested in a housing authority, including property where households are purchasing their homes under the Shared Ownership Scheme and where the local authority still retains an ownership stake,

Also included are the following:

• Voluntary and co-operative housing,
• Residential property to which commercial rates apply,
• Residential property owned by a charity or comprised in a discretionary trust, and
• Residential property where a person has to leave their house due to long-term mental or physical infirmity (e.g. a person that has moved into a nursing home). 

Waivers from the liability include owners of residential property:

• entitled to mortgage interest supplement
• located in prescribed unfinished housing estates (see Unfinished Housing Estates section for more detail) 

The household charge applies to all residential property, including those properties that are already liable to the Non-Principal Private Residences charge of €200.

The household charge can be paid in four instalments of €25 by direct debit.

A late payment fee will be applied in the case of a household charge paid as follows:

• not later than 6 months after the due date, is 10% of the amount outstanding;
• later than 6 months and not later than 12 months after the due date, is 20 % of the amount outstanding; or
• later than 12 months after the due date, is 30 % of the amount outstanding.

Also late payment interest of 1% per month or part thereof will be applied to unpaid amounts and both the €100 charge and any accumulated late payment fee will be charged against the property. This will continue for twelve years after the charge or late payment penalties concerned became due.  Importantly also, you will have to discharge any remaining household charges or late payment penalties due before selling or transferring your property. 

To pay your charge or for more information visit www.householdcharge.ie

Niall Dempsey is Director - OSK Tax