Thomas Gould
Question:104. Deputy Thomas Gould asked the Minister for Finance to provide an update on Revenue's work on the implementation of a vacant homes tax. [43070/23]
View answerThursday, 5 October 2023
Questions (104, 122)
Paul McAuliffe
Question:122. Deputy Paul McAuliffe asked the Minister for Finance for an update on the operation of the vacant homes tax; and if he will make a statement on the matter. [43130/23]
View answerWritten answers
I propose to take Questions Nos. 104 and 122 together.
Vacant Homes Tax (VHT) is administered by Revenue in accordance with Part 22B of the Taxes Consolidation Act 1997 (TCA 1997). A residential property will be within the scope of the new tax if it has been occupied as a dwelling for less than 30 days in a chargeable period. Each chargeable period will commence on 1 November and end on 31 October of the following year.
The first chargeable period for VHT is 1 November 2022 to 31 October 2023. The first self-assessed returns are due on 7 November this year and the tax will be payable on 1 January 2024. VHT will be charged at a rate equal to three times the property’s existing base Local Property Tax (LPT) liability and is required to be paid in addition to the property’s LPT liability. A small number of exemptions are available to ensure that homeowners are not excessively penalised for normal temporary vacancy.
A preliminary property register, developed by Revenue with data drawn from a range of sources including GeoDirectory, the Residential Tenancies Board and ESB Networks, has identified an initial subset of residential properties which may come within scope of VHT. This preliminary register is being used to issue correspondence to property owners who are identified as being potentially liable for VHT, advising them of their obligations. While approximately 25,000 such notices will issue from Revenue in the coming days, VHT operates on a self-assessment basis and property owners are required to self-assess their liability to VHT and submit a return if they determine that VHT applies to their property, even if they do not receive correspondence from Revenue. Revenue may contact further property owners at a later date following further data analysis.
Upon receipt of a notice property owners are required to confirm their property’s occupation status by 7 November 2023, thereby determining their liability to VHT. A detailed note explaining how Revenue determined the VHT preliminary property register was published on the Revenue website on 27 September 2023. This can be found at: revenue.ie/en/property/documents/vht/letter-campaign-report.pdf
Comprehensive information regarding Vacant Homes Tax is published on Revenue’s website, with clear information to assist property owners on how to self-assess if their property is subject to VHT, including details on how to submit a return, how to make a payment, or how to claim an exemption. Revenue has also published a VHT Tax and Duty Manual (TDM) which provides further detailed guidance on the tax, which is available at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-22b/22b-01-01.pdf
I am advised by Revenue that the online VHT Portal is available since 25 September 2023, where property owners can confirm the occupation status of their property, file VHT Returns, make payments, and submit any necessary documentation to Revenue. The Portal can be accessed through myAccount, ROS, or through the Local Property Tax (LPT) Online Portal.
In June 2023, Revenue launched a series of information sessions and webinars with key relevant stakeholders including Citizen’s Information; Approved Housing Body Regulatory Authority; Irish Council for Social Housing; the Irish Property Valuers’ Association, together with all Local Authorities.
Further information in relation to VHT is available on the Revenue website at: www.revenue.ie/en/property/vacant-homes-tax/index.aspx
Alternatively, individuals can contact Revenue through MyEnquiries, by telephone at (01) 738 36 26 or by post to: Freepost, LPT/ VHT Branch, PO Box 1, Limerick.