Peadar Tóibín
Question:181. Deputy Peadar Tóibín asked the Minister for Finance how much revenue the Government has collected from the vacant property tax in 2022 and to date in 2023. [40646/23]
View answerWednesday, 20 September 2023
Questions (181)
Written answers
As the Deputy is aware, the Vacant Homes Tax is a new measure announced in Budget 2023, which aims to increase the supply of homes for rent or purchase to meet demand. Legislative provision for the tax was made in the Finance Act 2022. The first chargeable period commenced on 1 November 2022. The first self-assessed returns are due on 7 November this year and the tax will be payable on 1 January 2024. Therefore, there is no data available yet in respect of the revenue that will be collected.
A residential property will be within the scope of the Vacant Homes Tax if it has been occupied as a dwelling for less than 30 days in a chargeable period. The Vacant Homes Tax will be charged at a rate equal to three times the property’s existing base Local Property Tax liability, and must be paid in addition to Local Property Tax. A small number of narrow exemptions are available to ensure that home-owners are not excessively penalised for normal temporary vacancy. As with Local Property Tax, the Vacant Homes Tax will apply only to habitable residential properties - it will not apply to derelict or uninhabitable properties.
This measure aims to increase the supply of homes for rent or purchase to meet demand, rather than raise revenue. It is a new measure which comes into operation this year. The estimated yield is low, as I anticipate this tax will influence behaviour and lead to property owners putting their vacant properties to more effective use.
Question No. 182 answered with Question No. 166.