Darragh O'Brien (Dublin Fingal, Fianna Fail)
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Since the publication of Housing for All, the Government has focused on the activation of permissions and land for housing.

The Residential Zoned Land Tax (RZLT) is a new tax introduced in Finance Act 2021 which seeks to increase housing supply by encouraging the activation of lands which are suitably zoned and appropriately serviced.

Draft maps were published by local authorities on 1 November 2022, supplemental maps on 1 May 2023 and final maps of lands in scope were published on 1 December 2023. Liability to the tax will commence on 1 February 2025, subject to enactment of the Finance Bill 2023.

Where development is not commenced on the identified land, the landowner will be subject to a tax of 3% of market value annually, administered by the Revenue Commissioners.

The tax will therefore incentivise landowners to either develop land, or to sell it to someone who will develop it, with the benefit of planning permission, to ensure they are not subject to an annual tax liability on their land.

The tax will operate in conjunction with amendments in 2021 to Section 42 of the Planning and Development Act 2000 which mean that the 5-year duration of a planning permission can only be extended once commencement of development has occurred and substantial works have been undertaken, introducing a requirement to ‘use’ a planning permission in order to avoid the permission lapsing.