A new household charge of €100.00 is to be introduced by the government in 2012.

This is an interim measure and will be replaced in future by a valuation-based property tax.

Residential property will be liable for the charge if it is occupied or suitable for occupation. Apartments and bedsits are also liable to the charge.

If your property is rented out, it is you and not your tenant that will be liable for the charge (unless the Lease is over 20 years long).

The charge must be paid before the 31^st of March 2012. If it is not paid the following penalties will apply:

·          Payments made within 3 and 6 months of January 2012 – a 10% penalty.

·          Payments made between 6 and 12 months late – a 20% penalty.

·          Payments more than 12 months late – a 30% penalty plus 1% interest per month 

If you own a residential property in Ireland, you are obliged to declare your liability for the Household Charge and pay it by the due date, unless you are exempt.

If the household charge remains unpaid the charge will be attached to the property and will have to be paid in order to complete any sale of the property.

A number of exemptions have been prescribed under the new law for example, certain unfinished housing estates are to exempt from the charge.

If you have further questions about the new Household Charge or would like more information as to whether your property might be exempt from the charge please contact Neil Dineen or Linda Harney at Donegans.