If an individual has to submit a Local Property Tax (LPT) return and has not done so by their income tax return filing date i.e. 31 October 2013, he / she will liable to a surcharge on his / her income tax liability. This is in accordance with S38 of the Finance (Local Property Tax) Act 2012 which links the submission of a LPT return with an income tax return.
The implication of this section is where a LPT return is due and the return and payment are outstanding, the individual’s income tax return is also treated as not being submitted on time. This will result in a surcharge being imposed on the individual’s income tax liability for the tax year. The surcharge is capped at the amount of the LPT liability where a LPT return is subsequently submitted.