NPPR charges derive their legislative basis from The Local Government (Charges) Act 2009 (the “Act”) and were levied between 2009 and 2013. They applied to any residential property where the owner of the property did not reside there as their normal place of residence.
Although the NPPR charge was abolished in 2013, any unpaid NPPR and associated late payment fees remained due and owing as a charge on the property pursuant to Section 7(1) of the Act.
It has therefore been standard conveyancing practice to insist that all NPPR charges levied against a property (and any late payment fees) be discharged in full prior to the completion of a sale and a Certificate of Discharge of NPPR or, a Certificate of Exemption from NPPR, be produced for relevant years between 2009 and 2013 inclusive.
The Act provides that a property will not remain charged with or liable to an NPPR payment or late payment fee after the expiration of 12 years from the date upon which the payment became due e.g. a NPPR charge levied on 31 July 2009 will expire on 31 July 2021.
The NPPR Bureau has confirmed that from 1 August 2021, any outstanding NPPR and late payment fees which a Vendor is required to pay prior to completing the sale of their property will reduce on a yearly basis in accordance with the schedule set out below until 1 April 2025 when the liability arising from NPPR and the charge on property will expire completely.
Year of Charge Amount Due Date of Expiry
2009 €2,070 After 31 July 2021
2010 €1,830 After 31 March 2022
2011 €1,470 After 31 March 2023
2012 €1,110 After 31 March 2024
2013 €750 After 31 March 2025
Therefore, on that basis, the Law Society Conveyancing Committee is of the view that it is reasonable for solicitors to proceed with a purchase of a property without raising requisitions on any NPPR charge outstanding in excess of 12 years.
Local authorities have been advised that payments in relation to 2009 NPPR liability cannot be accepted after 31 July 2021, and that payments relating to 2009 NPPR liability received from 1 August 2021 must be refunded.
This article is not intended as legal advice. For specific queries, please liaise with Esther O’Donnell whose details are set out below:
Esther O’Donnell, Solicitor
M: 087 965 8452