Mairéad Farrell (Galway West, Sinn Fein)
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285. To ask the Minister for Finance if lands which are subject to RZLT and are currently in probate following the death of the landowner will be exempted from the tax until ownership of the lands is settled; if the families of the deceased person should apply for rezoning prior to 1 April 2025 in this case; and if he will make a statement on the matter. [13971/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Finance Act 2021 introduced Part 22A Residential Zoned Land Tax (RZLT) into the Taxes Consolidation Act 1997. RZLT is designed to prompt residential development by owners of land that is zoned for residential or mixed-use (including residential) purposes and that is serviced.

RZLT is an annual tax, calculated at a rate of 3% of the market value of the land within its scope. The tax is due and payable from 2025 onwards in respect of land which satisfied the relevant criteria on 1 January 2022, or in the course of 2022. The first annual liability date for RZLT arose on 1 February 2025 and the 2025 liability is payable by 23 May 2025, subject to certain exceptions.

Specific RZLT rules apply on the death of the owner of land subject to RZLT, generally referred to in the legislation as a liable person. On the death of a liable person, the personal representative(s) of the deceased is deemed to be the liable person in respect of any relevant site for the duration of the administration of the estate; this treatment continues until another person becomes the new liable person in respect of that site. As such, the personal representative assumes responsibility for all RZLT obligations in this period and meets these obligations as if they acquired and dealt with the relevant site in the same manner as the deceased. To this end, the transfer of a relevant site to the personal representatives will not be considered a change of ownership for the purpose of RZLT, and any provision of the RZLT legislation which applied to the site prior to its transfer to the personal representatives continues to apply.

Any RZLT which arises in respect of liability dates which fall between the date of death and the completion of the administration of the estate (“post-death tax”) is due and payable on the earlier of the following dates:

1. 12 months from the grant of probate or grant of letters of administration of the deceased person’s estate, or

2. 24 months from the date of death of the deceased person.

However, if the administration of the estate is completed before the earlier of these two dates, the post-death tax is no longer due and payable. To avail of this treatment, RZLT returns for each liability date which arises from the date of death to the earlier of the two events mentioned above must be made in accordance with the legislation.

Finance Act 2024 introduced an opportunity for owners to submit a rezoning request in respect of land included on the revised map for 2025, which was published by local authorities on or before 31 January 2025. The rezoning request must be submitted to the relevant local authority between 1 February and 1 April 2025 and, where certain conditions are met, the owner may claim an exemption from RZLT in 2025 on foot of making such a request. Where the land is ultimately rezoned by the local authority for a purpose that excludes residential use, it will not be included in future RZLT maps and as such, will not be subject to the tax.

Where an owner of a site that is subject to RZLT has died and the personal representative is deemed to be the liable person in respect of that site, the personal representative assumes the role of the liable person for the purposes of RZLT and may submit a rezoning request in respect of land included on the revised map for 2025. They may also claim an exemption from the 2025 liability when filing the 2025 RZLT return, should the requisite conditions for the exemption be met.