Written Answers Nos. 367-386
370. Deputy Matt Carthy asked the Minister for Finance the level of tax relief available to those leasing out agricultural land; the total amount availed of; the average amount availed of; the average remaining tax liability for the years 2017 to date, in tabular form; and if he will make a statement on the matter. [29029/22]
Amharc ar fhreagra371. Deputy Matt Carthy asked the Minister for Finance the number of instances in which a person availed of consanguinity relief and tax relief in relation to the leasing out of agricultural land in the same year; the average amount of each type of relief availed of for the years 2017 to date, in tabular form; and if he will make a statement on the matter. [29030/22]
Amharc ar fhreagraI propose to take Questions Nos. 370 and 371 together.
Rental income from the leasing of agricultural land is exempt from income tax under Section 664 of the Taxes Consolidation Act (1997). I am advised by Revenue that the total tax relief, the average tax relief, and the average overall tax liability of taxpayer units claiming this relief in the years 2017 to 2019 (the latest year for which full analysed data are currently available) is as set out in the table below. The overall tax liability is the aggregate tax liability of the taxpayer units concerned, taking account of all income sources and any credits or reliefs claimed, including the exemption for income arising from the leasing of farmland.
|
- |
Number of Taxpayer Units |
Total tax relief €m |
Average tax relief € |
Average overall tax liability € |
|
2017 |
9,230 |
24 |
2,600 |
9,200 |
|
2018 |
10,210 |
27 |
2,700 |
9,000 |
|
2019 |
11,150 |
31 |
2,800 |
9,500 |
As the Deputy will be aware, Consanguinity Relief from Stamp Duty is provided for under Schedule (1)5 of the Stamp Duties Consolidation Act Consolidation Act 1999. The table below provides the Exchequer cost and numbers availing of consanguinity relief for the years 2017 to 2020 (the latest year for which the data is available).
|
- |
Number of Taxpayers |
Exchequer Cost €m |
Average amount claimed € |
|
2017 |
1,018 |
3.8 |
3,733 |
|
2018 |
1,647 |
22 |
13,358 |
|
2019 |
1,780 |
29 |
16,292 |
|
2020 |
2,182 |
51 |
23,373 |
I am further informed by Revenue that there were approximately 90 taxpayer units who declared exempt income from the leasing of agricultural land and who also claimed consanguinity relief during 2019, the only year for which fully analysed data are currently available. Based on the available data, it is not possible to determine if these claims relate to the same land.
372. Deputy Noel Grealish asked the Minister for Finance the current status of the Disabled Drivers Medical Board of Appeal; the frequency with which the board sits; the number of appeals that are outstanding waiting to be heard; when the backlog of appeals will be cleared; and if he will make a statement on the matter. [29042/22]
Amharc ar fhreagra415. Deputy Mattie McGrath asked the Minister for Finance the current position with the Medical Board of Appeal; and if the Board is operational and processing appeals in a timely manner. [30977/22]
Amharc ar fhreagraI propose to take Questions Nos. 372 and 415 together.
The Disabled Drivers and Disabled Passengers Scheme provides relief from Vehicle Registration Tax and VAT on the purchase and use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled, and satisfy at least one of six medical criteria, in order to obtain a Primary Medical Certificate.In the event that a PMC is not granted by the relevant Senior Area Medical Officer an appeal may be made to the independent Disabled Drivers Medical Board of Appeal (DDMBA).
Prior to the introduction of covid related restrictions, hearings of the Disabled Drivers Medical Board of Appeal were generally held on average twice a month at the National Rehabilitation Hospital in Dun Laoghaire, which has the appropriate facilities to cater for people with mobility impairing disabilities of the kind provided for under the Disabled Drivers and Disabled Passengers Scheme. However, appeal hearings ran at reduced capacity for public health reasons during this period. There are currently 382 appeals outstanding from 2021 and there are 175 new appeals for 2022, year to date.
Following the resignation of all members of the previous Disabled Drivers Medical Board of Appeal an Expression of Interest seeking suitable candidates for the Board closed on 29th April 2022. The Department of Health is convening a selection panel to assess the suitability of applicants for nomination. Requests for appeal hearings can be sent to the DDMBA secretary based in the National Rehabilitation Hospital. New appeal hearing dates will be issued once the new Board is in place.
Assessments for the primary medical certificate, by the HSE, are continuing to take place.
373. Deputy Gino Kenny asked the Minister for Finance if a person has tax credits with a PPSN using false Identification, if those tax credits can be kept and assigned to their correct identification in cases in which they are granted permission to stay given that this concern could not be answered by the Irish Immigration Service website or by legal advice sought (details supplied). [29137/22]
Amharc ar fhreagraThe allocation of Personal Public Service Numbers (PPSN) is a matter for the Department of Social Protection. Obtaining a PPSN using false documentation is an offence under social welfare legislation. I am advised by the Department of Social Protection that where a person is allocated a PPSN incorrectly, the Department of Social Protection takes all necessary steps to ensure that the personal details of that person, such as name, address, date of birth etc. are updated correctly and associated with their PPSN.
I am advised by Revenue that there are a wide range of tax credits, reliefs and allowances provided for in Part 15 of the Taxes Consolidation Act 1997.
Eligibility for these credits, reliefs and allowances is based on the conditions and criteria attached to each individual measure, and it is necessary to consider the full facts and circumstances of an individual’s case in order to determine his or her entitlement to same. In relation to the scenario outlined by the Deputy, the person would be allocated the credits to which they were entitled based on their own particular circumstances.
If an individual taxpayer is unsure about the credits, reliefs and allowances that he or she may be entitled to, or if the person believes they are receiving incorrect tax credits, they should contact Revenue. Contact details for the appropriate area in Revenue can be found on the Revenue website.
374. Deputy Noel Grealish asked the Minister for Finance the amount of interest that his Department has been charged by financial institutions since negative interest rates were introduced by year; and if he will make a statement on the matter. [29202/22]
Amharc ar fhreagraThe Department of Finance manages all the transactions on the Central Fund, which is the ‘Government’s bank account’, ensuring the smooth operation of Government business. In 2021, the value of transactions processed by the Department was in excess of €100 billion. Negative interest charges, when applicable, are therefore paid by the Department despite these being related to Government cash flows. Furthermore, the vast majority of such charges are paid to the Central Bank of Ireland (CBI) and not to any private financial institution. Some 80 per cent of any surplus income made by the CBI is reverted back to the Exchequer. Over recent years and in performance of this core function of Government negative interest charges have been paid by the Department of Finance as set out below.
|
Year |
€ |
|
2022 |
€1,173,127.18 |
|
2021 |
€1,636,742.79 |
|
2020 |
€593,280.45 |
|
2019 |
€541,052.38 |
|
2018 |
€18,675.33 |
|
2017 |
€26.68 |
|
2016 |
€48.17 |
|
2015 |
€34.78 |
375. Deputy Noel Grealish asked the Minister for Finance the State agencies, organisations or boards under the responsibility of his Department or that receive funding from his Department that have been charged negative interest by financial institutions since negative interest rates were introduced; the amount of interest that has been charged to each State agency, organisation or board in 2021 in each of the preceding years in which such charges were applied; and if he will make a statement on the matter. [29220/22]
Amharc ar fhreagraI am advised by a number of bodies under the aegis of my Department that they have been charged negative interest by financial institutions. Details provided by those bodies can be found below:
|
Body under the Aegis of the Department of Finance |
Year |
Negative Interest Charges incurred |
|
Central Bank of Ireland |
2021 |
€759,910 |
|
2020 |
€761,992 |
|
|
2019 |
€650,816 |
|
|
2018 |
€607,928 |
|
|
2017 |
€607,928 |
|
|
2016 |
€477,402 |
|
|
2015 |
€12,492 |
|
|
Financial Services and Pensions Ombudsman* |
2021 |
€61,380 |
|
2020 |
€27,489 |
|
|
2019 |
€9,356 |
|
|
2018 |
€3,785 |
|
|
Home Building Finance Ireland |
2021 |
€68,498 |
|
2020 |
€74,665 |
|
|
2019 |
€60,681 |
|
|
Investor Compensation Company DAC |
2021 |
€230.28 |
|
2020 |
€4,354.16 |
|
|
2019 |
€2,515.36 |
|
|
2018 |
€3,402.98 |
|
|
2017 |
€6.113.48 |
|
|
Irish Bank Resolution Corporation |
2021 |
€112,448 |
|
2020 |
€87,879 |
|
|
2019 |
€7,647 |
|
|
2018 |
€142,375 |
|
|
2017 |
€39,285 |
|
|
2016 |
€316 |
|
|
National Asset Management Agency |
2021 |
€54,162 |
|
2020 |
€56,244 |
|
|
2019 |
€49,422 |
|
|
2018 |
- |
|
|
2017 |
€2,976 |
|
|
National Treasury Management Agency |
2021 |
€116,322 |
|
2020 |
€105,150 |
|
|
2019 |
€75,942 |
|
|
2018 |
€3,938 |
|
|
Office of the Revenue Commissioners** |
2021 |
€1,836,977 |
|
2020 |
€1,406,840 |
|
|
2019 |
€1,023,758 |
|
|
2018 |
€548,442 |
|
|
2017 |
€205,641 |
|
|
2016 |
€17,060 |
|
|
2015 |
€63,459 |
|
|
2014 |
€17,971 |
|
|
Strategic Banking Corporation of Ireland |
2021 |
€403,029 |
|
2020 |
€424,004 |
|
|
2019 |
€298,287 |
|
|
2018 |
€233,386 |
|
|
2017 |
€180,504 |
|
|
2016 |
€122,357 |
|
|
2015 |
€958 |
*With respect to the Financial Services and Pensions Ombudsman’s (FSPO) current and demand deposit accounts, the FSPO has taken all possible actions to reduce/avoid negative interest and is monitoring rates charged on an ongoing basis. For this reason, the FSPO issues levy invoices on a staggered basis throughout the year, in order to reduce moneys held on deposit at any one time and thereby reduce negative interest charged. The FSPO continues to monitor announcements by credit institutions regarding any changes to negative interest rates and consults with the Office of Government Procurement on its banking services framework to explore suitable alternative options, as appropriate.
For completeness, superannuation contributions pertaining to two Model Schemes operating in the FSPO are being held by the FSPO in a Pension Account, which is included in the sum above, pending a decision by the Department of Finance on the proposed funding arrangements of the FSPO’s Staff and FSPO’s Ombudsman and Deputy Ombudsman superannuation schemes. Superannuation contributions relating to the FSPO’s Model Pension Schemes are held on deposit, and therefore attract negative interest charges.
**I am advised by the Office of the Revenue Commissioners that the negative interest costs they incurred have risen significantly over the period due to two factors. Firstly, as the number of banks imposing these charges has increased it is no longer possible to minimise the charges by holding larger balances in banks that do not do so. Secondly, there was a particular increase in 2020 and 2021 due to Revenue of necessity holding significant amounts needed to fund Covid-19 related subsidy scheme payments.
376. Deputy Matt Carthy asked the Minister for Finance if there are former Secretary Generals seconded from his Department; the locations of same; the purpose of the secondments; the remuneration they are in receipt of from his Department or additional allocation to the agency or institution to which they are seconded arising from the secondment; and if he will make a statement on the matter. [29263/22]
Amharc ar fhreagraI wish to inform the Deputy that there are currently no former Secretary Generals seconded from the Department of Finance.
377. Deputy Catherine Murphy asked the Minister for Finance the way in which hydrotreated vegetable oil enabled vehicles are taxed; the VRT that they incur; and the import levies and so on. [29299/22]
Amharc ar fhreagraI am informed by Revenue that Vehicle Registration Tax (VRT) does not depend on the type of fuel that a vehicle uses, but rather on the category into which the vehicle falls under the VRT legislation. Thus, there is no specific VRT treatment for vehicles that run on hydrotreated vegetable oil.
The VRT on a Category A vehicle (e.g. passenger car) is generally based on the vehicle’s value and its emissions of CO2 (carbon dioxide) and NOx (nitrogen oxides), with higher emitting vehicles paying proportionately higher VRT than lower-emitting ones of the same value. The VRT on a Category B vehicle (e.g. van) is generally 13.3% of the value of the vehicle, and for a Category C vehicle (e.g. lorry, bus) the VRT charge is €200.
When imported from outside the European Union, or from within the European Union where a vehicle is a New Means of Transport (i.e. it is not more than 6 months old or has not more than 6,000 kilometres done), vehicles are subject to VAT at the standard rate, which at this time is 23%. Customs duty is also due on a vehicle imported from outside the EU; depending upon the point of origin of the vehicle, it is either charged at a 0% or 10% rate of the customs value of the vehicle.
378. Deputy Sorca Clarke asked the Minister for Finance if he will consider introducing measures to provide tax relief on the cost of childcare which will greatly assist struggling families; and if he will make a statement on the matter. [29396/22]
Amharc ar fhreagraAs I indicated in March last in my response to a similar question from Deputy Holly Cairns (No. 192 of 24 March), I acknowledge the cost pressures on parents with young children. In recognition of these pressures, a number of support measures are already in place to ease the burden on working parents. These include various tax-exempted financial supports provided by the Minister for Children, Equality, Disability, Integration and Youth to assist parents to offset the costs of early learning and childcare and measures such as the Working Family Payment provided by the Minister for Social Protection.
Budget 2022 announced the introduction of a number of direct expenditure measures to support parents in respect of childcare costs, including:
- From May 2022, hours spent in the Early Childhood Care and Education pre-school programme or school will no longer be deducted from a family's entitlement to subsidised hours of care under the National Childcare Scheme.
- From May 2022, a Transition Fund for Early Learning and Care and School-Age Childcare providers will require participating providers to ensure no increase on parental fees from the September 2021 levels. This will be replaced in September 2022 by a new Core Funding stream which requires participating providers to maintain their fee levels at or below September 2021 levels.
- From September 2022, the universal subsidy of the National Childcare Scheme will be extended to children aged up to 15.
These measures will ensure that the full affordability benefits of the National Childcare Scheme and the Early Childhood Care and Education programme are felt by parents.
With regard to taxation measures, and separate to the above:
-The Accelerated Capital Allowances scheme for Childcare Services was introduced to encourage employers to develop childcare facilities onsite for their employees. www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-09/09-01-11.pdf.
- Individuals who provide child-minding services in their own home may claim childcare services relief each year, provided that they do not receive more than €15,000 income per annum from the child-minding income. www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/childcare-services/index.aspx.
- A Single Person Child Carer tax credit of €1,650 is available as well as an additional standard rate band of €4,000. This credit and band is payable to any single person with a child under 18 years of age or over 18 years of age if in full time education or permanently incapacitated. The primary claimant may relinquish this credit and increase in the rate band to a secondary claimant with whom the child resides for not less than 100 days in the year. www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/children/single-person-child-carer-credit/index.aspx.
As the Deputy will appreciate, I receive many requests for the introduction of new tax reliefs and the extension of existing ones. In considering these, I must be mindful of the public finances and the many demands on the Exchequer and I must have regard to budgetary constraints and the equitable treatment of all tax-payers. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.
Providing a tax credit for parents in respect of childcare costs was considered by the Interdepartmental Group on Future Investment in Childcare in 2015 and was deemed not to be the best approach to investing in affordability for parents. Further details of that consideration are available in that report: assets.gov.ie/36162/37cc5033f3124062912a416088a48827.pdf.
Therefore, I do not currently have any plans to introduce additional tax relief on the cost of childcare.
379. Deputy Sorca Clarke asked the Minister for Finance if he will consider introducing measures to provide tax relief on home rental costs; and if he will make a statement on the matter. [29397/22]
Amharc ar fhreagraAs outlined in the 'Housing for All' strategy, the Government’s primary response to mitigating residential price inflation is to increase supply. The strategy outlines the plan to increase affordability and housing supply by committed to, amongst other things, an average of 2,000 new ‘cost rental’ homes every year, with targets of rents being at least 25 per cent below market level. Additionally, in respect of properties in rent pressure zones, since 11 December 2021 annual rent increases are limited to 2 per cent per annum or the rate of inflation, whichever is lower.
Tax relief in respect of rent paid was previously available to those paying for private rented accommodation, including rent paid for flats, apartments or houses. It did not include rent paid to local authorities. This relief was abolished in Budget 2011 following a recommendation in the 2009 report by the Commission on Taxation. As such, it is no longer available to those that commenced renting for the first time from 08 December 2010.
The view of the independent Commission on Taxation (2009) was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation. Accordingly, the result of reintroducing this relief would very likely be a transfer of Exchequer funding directly to landlords, which would not have the intended effect of reducing the cost pressure on tenants.
At the time of its abolition, the rental tax relief cost the Exchequer up to €97m per annum and it is likely that this figure would be even higher today were a similar scheme to be put in place.
Having regard to the foregoing, I have no plans, at present, to reintroduce a tax relief for home rental costs incurred for private rented accommodation.
380. Deputy Ged Nash asked the Minister for Finance the estimated annual cost of increasing the small benefit exemption to €2,000; and if he will make a statement on the matter. [29430/22]
Amharc ar fhreagraWhere an employer provides an employee or director with a small benefit, that is, a voucher or a benefit (a tangible asset other than cash) with a value not exceeding €500, that benefit will be exempt from Income Tax, PRSI and USC, provided all of the conditions, contained within section 112B of the Taxes Consolidation Act 1997 are satisfied.
The conditions are as follows -
- the incentive is provided in the form of a voucher or other non-cash item;
- where the incentive provided is in the form of a voucher, this voucher must only be for the purchase of goods or services and must not be capable of being exchanged in part or in full for cash;
- the value of the incentive does not exceed €500; and
- the incentive does not form part of a salary sacrifice arrangement.
Where all of the conditions are not satisfied, the exemption does not apply and the benefit is subject to tax in the usual way, in accordance with section 112 TCA 1997.
Concessional Treatment – COVID 19 circumstances
Due to the unprecedented nature of the COVID-19 pandemic, employers may have wanted to recognise efforts of frontline or other key staff working during the crisis, either by accelerating part of a reward usually made later in the year or making an additional award.
Following the start of the COVID-19 pandemic, Revenue has in certain circumstances concessionally waived the requirement that only one voucher issues per year for the 2020 and 2021 tax years and has permitted an employer to issue two vouchers to the (maximum) value of €500. This concessionary treatment continues to apply for 2022. It applies where the additional award is related to an employee's exceptional efforts during the COVID-19 pandemic and where the employee continued to work during the restricted period.
All other conditions of section 112B TCA 1997 must be met, for example the maximum cumulative value of incentives must not exceed €500 and the voucher or incentive must not be redeemable, in full or in part, for cash. Appropriate documentation must be retained by an employer where this concession is availed of.
The overall cost of the increase proposed by the Deputy is difficult to estimate, and would depend very much on the take-up, the amounts awarded by employers and the tax situation of the employees. No separate returns are required under the scheme so Revenue does not have statistics.
The scheme continues to be kept under review and any amendments would need to be considered in with reference to the Department’s guidelines on tax expenditures, which make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances where there are demonstrable market failures, where a tax-based incentive is more efficient than a direct expenditure intervention; and that the potential for deadweight and additionality are considered.
Any increase in the amounts allowable under scheme would create an additional cost which must be recovered elsewhere.
381. Deputy Thomas Gould asked the Minister for Finance when NAMA sold the Bessboro site. [29437/22]
Amharc ar fhreagra382. Deputy Thomas Gould asked the Minister for Finance the amount of the original loan, the amount that NAMA wrote the loan down for; and the amount that NAMA sold the Bessboro site for. [29438/22]
Amharc ar fhreagra383. Deputy Thomas Gould asked the Minister for Finance if the State sought to buy the Bessboro site from NAMA. [29439/22]
Amharc ar fhreagraI propose to take Questions Nos. 381 to 383, inclusive, together.
As the Deputy will be aware, NAMA does not own properties, it owns loans. The properties securing NAMA’s loans are owned by debtors. These debtors, or receivers in the case of enforcement, manage and control the properties. If a State body expresses interest in a property secured to NAMA, NAMA will facilitate engagement between the debtor / receiver and the relevant body. However, as secured creditor, NAMA cannot force a debtor or receiver to act in a manner that would hinder their ability to repay their loans, such as unduly withholding properties from sale or selling a property for less than market value. As regards the Bessboro site, I am advised that NAMA has no record of an approach by a State body seeking to purchase the site.
I wish to advise the Deputy that under sections 99 and 202 of the NAMA Act 2009, NAMA is legally precluded from divulging confidential debtor information. Therefore NAMA cannot disclose the amount of the original loan attaching to the site.
I am advised that NAMA did not write down the related loan, nor was the site sold while it was secured to NAMA. Rather the loan was sold in July 2016 as part of a wider loan sale. It was at this point that NAMA’s interest in the site ended. The Deputy should note that the sale of loans does not impact the ownership of the underlying properties.
384. Deputy Thomas Gould asked the Minister for Finance if a person who has had a loan written down by NAMA can repurchase that loan. [29440/22]
Amharc ar fhreagraI refer the Deputy to section 172 of the NAMA Act 2009, which is a legal provision designed to prevent defaulting debtors from buying back their secured assets from NAMA. NAMA has enhanced this legislation with Asset Disposal and Loan Sale policies that are more wide-reaching than section 172. They encompass disposals of secured assets by debtors or receivers as well as loan assets being sold by NAMA.
385. Deputy Alan Farrell asked the Minister for Finance if his attention has been drawn to the challenges facing the renewables industry on the issue of capital acquisitions tax given that it applies to lands used for solar farms; and if he will make a statement on the matter. [29532/22]
Amharc ar fhreagraAs the Deputy may be aware, agricultural relief allows the value of agricultural assets gifted or inherited (including farmland, buildings, stock) to be reduced by 90% of its value for the calculation of a Capital Acquisition Tax (CAT) liability. This is a valuable relief from CAT and a fundamental objective of this relief is that it is availed of by genuine, and active farmers, and that it relates to agricultural land which is being actively farmed.
One of the key conditions for agricultural relief is that agricultural property must make up at least 80% of a beneficiary’s total property. Prior to the changes made in Finance Act 2017, any land leased for solar panels was not classified as agricultural land and therefore could not be counted towards satisfying this 80% threshold.
In recognition of the then Government’s commitment to facilitate the development of solar energy projects in Ireland and the potential role of farmland in achieving this, an amendment was made to allow land leased for solar panels to be classified as qualifying agricultural activity under certain conditions.
While introducing this amendment, it was important that sight was not lost of the fundamental principle which underpins agricultural relief policy, namely to support the intergenerational transfer of family farms and to encourage succession planning. Therefore, a key aspect of this relief is to ensure that it is targeted at land which is actively farmed. Consequently to facilitate the above policy objectives, the amendment included a condition that in order to be classified as qualifying agricultural activity, the total area under lease for solar should not exceed 50% of the total area of agricultural land.
This addressed any potential disincentive to leasing land for solar panels, while also preserving the integrity of this significant CAT relief.
386. Deputy Jackie Cahill asked the Minister for Finance if a property owner would still be liable for a vacant property tax in the case where they own land that is zoned for residential development but cannot secure a purchaser for the property; and if he will make a statement on the matter. [29592/22]
Amharc ar fhreagraAs the Deputy is aware, Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. The RZLT is designed to prompt residential development by owners of land that is zoned for residential or mixed-use purposes and that is serviced. The RZLT is an annual tax, calculated at a rate of 3% of the market value of the land.
Each local authority will prepare and publish a map identifying land within the scope of the tax. The first draft map will be published by the local authorities on 1 November 2022.
The tax will be due and payable in May 2024 in respect of land which was suitable for residential development on 1 January 2022 because it was both zoned and serviced on that date, and on which development has not commenced before 1 February 2024. Where land becomes both zoned and serviced after 1 January 2022, tax will be chargeable in the third year after it comes within the scope of the tax.
There are a limited number of exclusions from the tax, including residential dwellings and their gardens and land which is zoned for a mixture of residential and other uses (and not purely for residential development) that is integral to the operation of a business carried out on or beside it.
If a landowner believes that their land should not be zoned as suitable for residential development, they can make a submission to the local authority seeking to have the land rezoned. The local authority will consider the submission and, if appropriate, they will commence a variation procedure to alter the zoning of the land. This variation procedure, and the local authority’s decision on whether or not to commence one, is part of the normal zoning process.
The tax may be deferred in certain circumstances, including where residential development is commenced. Tax deferred while residential development is ongoing, will, on the making of a claim, not be payable where development is completed within the timeframe set out in the planning permission and a certificate of completion is in place.
Where a site that is subject to RZLT is for sale, in the period until the sale is completed, the original owner is liable for the tax. Before the sale of a property is completed, the vendor is required to pay any unpaid RZLT due in respect of a liability date falling before the date of sale and to submit any outstanding returns.
