Michael Healy-Rae (Kerry, Independent)
Link to this: Individually | In context | Oireachtas source

163. To ask the Minister for Finance if exceptions can be made with regard to the vacant property tax (details supplied); and if he will make a statement on the matter. [23559/24]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Vacant Homes Tax (VHT) was announced in Budget 2023 and legislated for in Finance Act 2022. The objective of the vacant homes tax is to increase the supply of homes for rent or purchase by encouraging the owners of vacant, habitable, residential properties to bring those properties back into use.

The tax applies to residential properties that are within the scope of local property tax (LPT) only. It does not apply to properties that are derelict or uninhabitable. The tax seeks to achieve an appropriate balance between incentivising owners of vacant homes to bring their properties back into use and not penalising home-owners for normal, temporary vacancy. A residential property will be within the scope of VHT, if it has been occupied as a dwelling for less than 30 days in a chargeable period. Each chargeable period will run for 12 months from 1 November to 31 October of each year.

Where a property is in use as a dwelling for less than 30 days in a twelve-month period, consideration should be given to whether the property could be put to greater use. The tax operates on a self-assessed basis, which means that property owners are required to determine whether or not they have a liability to pay vacant homes tax and to satisfy any related pay and file obligations.

The vacant homes tax does not apply to properties in a chargeable period if they were sold during this time, to properties that were exempt from LPT for the year in which a chargeable period for vacant homes tax ends, or to any property that was subject to a bona fide tenancy lasting at least 30 days during a chargeable period.

With regards to the details supplied by the Deputy, the VHT legislation provides for a limited number of exemptions to ensure property owners are not unfairly charged for temporary vacancy arising from genuine reasons. These exemptions include:

• where the owner-occupier of a property has recently died, and while their estate is in probate, ending once administration of the estate has been completed;
• where the property was actively marketed for sale or for rent;
• where the occupation or sale of the property was restricted by court order;
• where the property underwent structural works, substantial repairs or substantial refurbishment works;
• where the property was vacant as a result of the owner’s long-term illness; and
• where the property is owned by a North-South implementation body within the meaning of the British-Irish Agreement Act 1999.

The legislation includes a standard record-keeping provision, which will require property owners to maintain certain records in relation to the use of their properties to support compliance with the tax. If they do not keep the records concerned, a penalty will apply.

Further detailed information regarding the different VHT exemptions is available on the Revenue website: www.revenue.ie/en/property/vacant-homes-tax/exemptions/index.aspx.