Revenue have recently issued guidelines on the Vacant Homes Tax (VHT) which was introduced to encourage vacant homes to be put to use to alleviate the housing crisis. The tax first applies for the period from 1 November 2022 to 31 October 2023. The filing date for the return is 7 November 2023 and payment is due by 1 January 2024. The VHT is charged at three times the standard Local Property Tax charge for the property (before the Local Authority discount is applied) and applies to a residential property:
Residential properties outside the scope of VHT
A residential property will not be subject to VHT if:
Filing of Returns
The individual who is the chargeable person for LPT purposes is required to file the VHT return. A return is only required where:
A 5% surcharge will be applied to the VHT liability where the return is filed within two months of 7 November 2023 or 10% if filed thereafter. Interest will also arise on late payment of the tax.
Where you have a holiday home it will not be subject to VHT provided it was in use as a residential dwelling for 30 days or more during the chargeable period. Our recommendation is that you keep a log of the days it was used by you or any other individuals during this period. Revenue may seek evidence by way of electricity or gas bills, waste management bills or where you have a short term letting in place, evidence of this by way of emails or contracts.
Exemption from Vacant Homes Tax
The following properties are exempt from VHT but the exemption must be claimed by way of filing a tax return by 7 November following the end of the chargeable period:
If you require any further information or have any further queries in relation to this tax, please contact your usual PMQ contact.
This summary is intended as a general guide. No action should be taken without obtaining professional taxation advice.
If you have any queries, please do not hesitate to contact Purcell McQuillan Tax Partners Ltd on 01 668 2700 or email your usual PMQ contact.
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