In 2023, a new Vacant Homes Tax was introduced by Section 96 of the Finance Act 2022.
This tax applies to buildings which are residential properties for the purposes of Local Property Tax (LPT). This means that it will not apply to derelict properties or properties unsuitable for use as a dwelling which were consequentially not liable for LPT.
The Vacant Homes Tax is an annual self-assessed tax and will be administered by the Revenue. The Vacant Homes Tax will apply to all residential properties in use as a dwelling which have been occupied for less than 30 days in the 12 month chargeable period. The chargeable period commences on 1st November and ends on 31st October of the following year.
Owners of vacant properties are required to self-assess their liability to the Vacant Homes Tax by looking back over the previous chargeable period to determine if their property was liable.
There are a number of exceptions liability for the Vacant Homes Tax to ensure that owners are not unfairly charged if the property is vacant for a genuine reason. These include properties that are currently listed for sale or recently sold during the chargeable period, as well as properties which are vacant as a result of structural works, substantial repairs or significant refurbishment work for a period of not less than six months in the chargeable period and subject to other conditions.
Records should be maintained if intending to rely on an exemption from the Vacant Homes Tax. Even if the tax payer has assessed that the Vacant Homes Tax does not apply to a property, the Revenue may ask for confirmation of the status of the property and have the authority to ask for the submission of Vacant Home Tax Return.
The rate of the Vacant Homes Tax is charged at a rate equal to seven times the property’s existing basic Local Property Tax rate.
A registered of vacant homes and their associated chargeable persons has been established by Revenue and will be continually updated as necessary.
The legislation provides for penalties, interest and a late filing surcharge to be applied in cases of non-compliance
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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.
