Revenue is to write to the owners of approximately 25,000 properties to advise them of the actions they need to take, where the data available to Revenue indicates that the recipient may have a liability to Vacant Homes Tax (VHT). Revenue has provided a sample of the correspondence which will issue in the coming days.
If a property owner receives this letter, they are required to confirm the status of their property. This is the case even if their property does not meet the relevant conditions for the tax to apply. Revenue will use the information provided to update its VHT register.
Not all property owners who will be liable to VHT will receive a letter from Revenue. If a property owner has a liability to VHT but does not receive a letter, they are still obliged to file a VHT return and complete their self-assessment obligations. A report detailing the basis on which Revenue identified a subset of those who may potentially have a liability to VHT can also be accessed here.
Property owners are responsible for determining whether they have a liability to VHT for a chargeable period and satisfying their pay and file obligations. To assist property owners in understanding their obligations in respect of VHT, Revenue has published comprehensive guidance on its website in addition to the recently published Tax and Duty Manual.
Revenue has advised that VHT will only apply to properties which are residential properties for the purposes of Local Property Tax (LPT) and have been used as a dwelling for less than 30 days in a chargeable period. VHT will not therefore apply to:
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residential properties which were inhabited for 30 days or more in the relevant chargeable period, or
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residential properties which were sold or subject to a qualifying tenancy during the relevant chargeable period.
According to Revenue’s press release, those who own a vacant residential property which does not fall within one of the above exclusions are required to confirm if their property is liable to the tax as soon as possible, and by 7 November 2023 at the latest.
During the confirmation process, property owners will have the option to claim an exemption from VHT, where applicable. It is important that owners with properties which do not fall within any of the above exclusions, but may still be otherwise exempt from the tax, file a return in order to meet their VHT obligations and claim their exemption.
VHT is set at a rate equal to three times the property’s standard LPT rate, that is, the LPT rate for the relevant band before any Local Authority Adjustment factor. The amount is calculated by the Revenue system when a return is submitted. All VHT requirements are in addition to any LPT requirements which apply to a property.
There are a range of options available to pay VHT, including:
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spreading the payments over 2024 by monthly direct debit,
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paying in full through an Annual Debit Instruction (ADI), and
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paying in full by credit or debit card.
Property owners who intend paying by monthly direct debit should instruct Revenue by 1 January 2024. Monthly direct debit payments will then be deducted each month from 15 January 2024 to 15 December 2024. ADI payments will be taken on 21 March 2024 unless the property owner elects for an earlier date. Payment by personal credit or debit card will be processed on the day the payment details are provided.
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