The Vacant Site Levy was introduced in 2015 and its purpose was to stimulate the development of housing and to eliminate the hoarding of land. The levy was initially set at 3% of the market value of the site, however in 2019 it was increased to 7% of the market valuation.
In 2024, the new Residential Zoned Land Tax replaced the Vacant Site Levy. The tax will apply from 1st February 2025.
Residential Zoned Land Tax applies to land which has not been developed for housing but is serviced and zoned for residential development. The objective of the tax remains ultimately the same – to activate land that is serviced and zoned for residential use in order to increase housings and ensure the regeneration of vacant and idle lands in urban locations.
The Finance Act 2021 has set the rate of the Residential Zoned Land Tax at 3% of the market value of the land.
A “vacant site” can be defined as one of two categories of land.
Firstly, it may be residential land more than 0.05 hectares where there is a need for housing in the area. The site must be suitable for housing and the majority of the site must not have been in use for an extended period of time.
The second category which falls under the Residential Zoned Land Tax is regeneration land, other than residential land, where the majority of the site has not been in use for an extended period of time, or the site is having a negative impact on existing amenities or the character of the area.
For the year 2025, there is a possible exemption available through the local authorities if the landowner seeks to have the land rezoned to reflect the activity they carry out on their land.
Once a vacant site has been identified it must be vacant for a period of 12 months prior to being placed on the register.
Each individual planning authority shall maintain the register of vacant sites and the Residential Zoned Land Tax will be payable annually for all sites on the register.
Disclaimer
In contentious business, a Solicitor may not calculate fees or other charges as a percentage or proportion of any award or settlement.
This information is for guidance purposes only. It does not constitute legal or professional advice. Professional or legal advice should be obtained before taking or refraining from any action as a result of the contents of this publication. No liability is accepted by McElhinney & Associates for any action taken in reliance on the information contained herein. Any and all information is subject to change.
About the Author
Jolene McElhinney, BBLS, Principal Solicitor
Jolene McElhinney is the founding principal of McElhinney & Associates, renowned for her expertise in employment law and personal injury claims across the North West of Ireland. With a distinguished academic background and over a decade of experience, Jolene is dedicated to providing personalised, expert support to her clients, ensuring they navigate the complexities of the legal landscape with confidence and clarity.
