Working out IPT

[robwill]

Hello Nigel.

Is there any way that mere mortals like myself can work out the value of their property as at 1980, or is this something that only the powers that be in the Land Registry can do?

Our Property was built in 2005 so I would not have a clue as to its value in 1980.

Robert.

[Nigel Howarth]

Hello robwill and welcome to the forum.

The Land Registry assesses the 1980 value of a property when its Title Deed is issued/amended using its historical data (which is not available to us 'mere mortals').

I guess you don't have the deeds to the property?

Regards,

[robwill]

Thanks for your reply Nigel.

No, I don't have my deeds yet.

My developer, Kleanthis Savva are asking for me to pay all the IPT that they have paid over the last seven years, and also this years payment, they say it has to be paid by 16th October. I am not very happy to do this.

My question is, as I do not have my deeds yet, am I supposed to pay up now or can I just wait until the deeds are issued.

Robert.

[Nigel Howarth]

You'll need to check your contract of sale Robert - nearly all of the contracts I've seen make purchasers liable for IPT from the date they took delivery of a property.

Some developers are trying to charge buyers based on a percentage of the purchase price. If this is the case with yourself, I suggest you read the article 'Immovable property tax & fraudulent practices'.

and also Immovable Property Tax law. And take particular note of this letter from the Interior Ministry.

Regards,

[elusien]

Hi,

I too do not have my title deeds. My developer (Pafilia) has asked me to pay the IPT (my contract says that if they ask I must pay) but only for 2013. They estimated it would be 700 euros. I thought this was a bit high, so I asked how they calculated it.

They are the registered owners for a lot of property so their bill is huge. Basically they pay at the highest rate (1.9%), so my portion is 1.9% of the estimated 1980 price of my villa. I asked them what they had used for this and they said about 37,000 euros, which is about 1/10th of what I paid in 2005, so it seems quite a reasonable estimate to me. Had I been in possession of my title deeds I would only have been liable for about 210 euros. I asked for and received a receipt that stated the money was specifically for the 2013 IPT.

Prior to last year the maximum rate was 0.4%, so the developer could have asked me for about 150 euros each year, but they are holding off on those years until my title deeds are transferred, hopefully in the next couple of years. Because of the NULL RATE BAND I would not have been been liable for any IPT during those years had I been in possession of my title deeds.

My solicitor says that when I receive my title deeds it is a simple matter to claim the overpay back from the Inland Revenue. Providing I get proof from my developer of their paying the Inland Revenue the IPT and I have the itemised receipts for the money I pay them.

I hope this helps you with your query.