Dáil Éireann Debate, Tuesday - 12 December 2023
266. Deputy Jim O'Callaghan asked the Minister for Finance whether registered charities can be permitted to rent residential units without being subject to vacant home tax; and if he will make a statement on the matter. [55405/23]
View answerAs the Deputy is aware, Vacant Homes Tax (VHT) is provided for in Part 22B of the Taxes Consolidation Act 1997 (TCA). It aims to increase the supply of homes for rent or purchase to meet demand. 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 was 1 November 2022 to 31 October 2023. VHT operates on a self-assessment basis.
Certain properties are excluded from the tax including those which are the subject of a relevant tenancy for a period of at least 30 days in a chargeable period. A relevant tenancy is one between unconnected parties at market rent where the tenancy is registered with the Residential Tenancies Board. In addition, the tax will not apply to properties that are exempt from LPT for the year in which the chargeable period ends. For example, if an exemption from LPT has been claimed for 2023, with the result that no LPT is payable for that year, then the property will be excluded from the scope of vacant homes tax for the chargeable period 1 November 2022 to 31 October 2023.
An exemption from LPT exists in respect of exemptions in respect of the following:
• properties used by a charity or public body providing special needs accommodation;
• properties owned by charities for recreational services.
Any property which is eligible for these exemptions is not within scope of the VHT.
There are also a number of exemptions available in respect of VHT itself. This includes an exemption for a chargeable period where a property was actively marketed for rent where the rent sought for the property does not exceed market rent, and there are no conditions attaching to the tenancy which are unreasonable or designed to impede or disrupt a genuine tenancy of the property being agreed.
If a chargeable person is claiming an exemption for VHT they must file a VHT return and retain and submit all supporting documentation to Revenue if required. Failure to do so may result in penalties as provided for in Part 22B of the TCA.
While there is no specific VHT exemption for charities, any charity who rents residential units will likely be exempt or excluded from the tax if they meet the conditions attaching to one of the exemptions.
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.
