Jim O'Callaghan (Dublin Bay South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

117. To ask the Minister for Finance the estimated first- and full-year revenue raised by an increase of the vacant property tax rate by increments of one additional multiple of the Local Property Tax, in tabular form. [40258/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

The Vacant Homes Tax (VHT) is a self-assessed tax, and the number of properties in scope and the amount of tax payable, depend on the returns submitted by property owners, the number of properties declared as liable, and the number of property owners entitled to claim available exemptions from the tax.

The first chargeable period for VHT commenced on 1 November 2022 and ended on 31 October 2023. VHT for the first chargeable period was charged at a rate equal to three times the property’s existing base Local Property Tax (LPT) charge and was payable in addition to LPT. As of July 2024, approximately 6,000 properties have been declared as vacant for the first chargeable period, with exemptions claimed in respect of approximately 2,500 of these properties. Approximately 3,500 properties have a liability to VHT, amounting to €2 million.

The second chargeable period commenced on 1 November 2023 and will end on 31 October 2024. VHT for this period will be charged at a rate of five times the property’s existing base LPT charge. Returns in respect of this chargeable period will be due on 7 November 2024, with the associated tax due for payment on 1 January 2025. The yield for the second chargeable period will depend on the number of properties declared as liable for the tax.

As the Deputy will be aware, in Budget 2025 I announced an increase in the rate at which the VHT is levied from five times to seven times the base LPT charge. This will apply from the next chargeable period, commencing on 1 November 2024.

I am advised by Revenue that a tentative estimate of the additional yield raised by an increase in the VHT rate, from 7 times the base LPT charge to 8 times the LPT charge, would be in the region of €0.7 million. The same estimate would apply to each further increment to the multiplier to the LPT rate.

It should be noted that VHT returns reflect the position at a particular point in time, and the estimated additional yield does not take into account of any behavioural change.

Jim O'Callaghan (Dublin Bay South, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

118. To ask the Minister for Finance the estimated first- and full-year cost of eliminating capital gains tax on landlord selling units to their tenants.. [40259/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I am advised by Revenue that, as landlord and tenant status is not captured on the tax return in respect of vendors and purchasers, there is no data from which Revenue can estimate the cost of this proposal.