Wednesday, 16 November 2022

New tax to activate vacant land for residential purposes

 The Government’s Housing For All – A New Housing Plan for Ireland proposed a new tax to activate vacant land for residential purposes as a part of the Pathway to Increasing New Housing Supply. The Residential Zoned Land Tax was introduced in the Finance Act 2021. Each Local Authority has published draft maps identifying lands which are subject to the tax. These are now open for consultation until the 1st of January 2023.

A supplemental map will be published on 1st of May 2023, identifying additional land considered to be in scope as a result of a change of zoning, servicing or where the local authority becomes aware of the fact that land, which didn’t appear on the draft map, may meet the criteria for being in scope, such as where this has been identified during submissions. The supplemental map will also be on public display and open to submissions which may challenge the inclusion of additional land on the map.

Land appearing on both the draft and supplemental maps, as amended to take into account the outcome of submissions made in respect of the land on these maps, will be included on the final map of land in scope for the tax in the local authority area to be published on 1st of December 2023. This land will be subject to the tax unless it is exempt as a residential property.

The objective of the tax is to activate land that is serviced and zoned for residential use or mixed use, including residential use, in order to increase housing supply and to ensure regeneration of vacant and idle lands in urban locations. These locations have been identified within statutory land use plans as being appropriate locations for housing and they have benefitted from investment in the key services to support the delivery of housing. The tax will be calculated at 3% of the market value and payable from 2024.

Article by Brendan Buck of BPS Planning & Development Consultants LTD

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