Revenue Note for Guidance

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Revenue Note for Guidance

PART 22A

RESIDENTIAL ZONED LAND TAX

Overview

This Part provides for Residential Zoned Land Tax. The tax is calculated at 3% of the market value of land that is zoned as being suitable for residential development and is serviced. Each local authority is obliged to prepare and publish a map identifying land within the scope of the tax. The legislation provides that the owner of land included on a local authority map may appeal its inclusion to the local authority; a decision by the local authority may subsequently be appealed to An Bord Pleanála. Landowners may also apply to the relevant local authority to amend the zoning of their land, should it appear on the revised map for 2025. Exemptions from the tax are available in certain circumstances, including where the aforementioned application to amend a zoning of land which is liable to the tax for 2025 is made (section 653IA) and where a grant of planning permission is the subject of judicial review proceedings by an unconnected third party (section 653AF). The tax may also be deferred in certain circumstances, including in the 12 month period following the date of grant of planning permission (section 653AGA), where residential development is commenced (section 653AH), where a liable person is in the process of appealing their inclusion on a local authority residential zoned land tax draft revised map or revised map (section 653AE), where planning permission granted is subject to appeal by an unconnected third party (section 653AF) or while an application for retention of planning permission or substitute consent is being considered (section 653AFA) or an appeal or judicial review of same is ongoing (section 653AFB). Provisions dealing with the valuation of land, the payment of the tax and the penalties that may be imposed when land is undervalued in calculating the residential zoned land tax due are contained in this Part. Certain provisions contained in Chapter 5, Part 41A, including the making and amending of assessments and the right of a Revenue officer to make enquiries, also have application for the purposes of this Part.

Chapter 1

Interpretation

Summary

Chapter 1 is the interpretation chapter and sets out the meaning of various concepts and terms in this Part.

653A Interpretation (Part 22A)

Summary

This section gives the meaning of certain terms and provides rules for the construction of certain references used in this Part by reference to provisions, inter alia, in the Taxes Acts and the Planning and Development Act 2000. Some of the terms are, in fact, defined elsewhere in the Part but are listed in this section so as to give them general application throughout the Part.

Details

(1)Definitions

“Act of 1990” means the Building Control Act 1990.

“Act of 2000” means the Planning and Development Act 2000.

“building” includes part of a building and any class or classes of structure which are prescribed by the Minister to be a building for the purposes of the Act of 1990.

“certificate of compliance on completion” means certificate of compliance provided for under section 6(2)(a)(i) of the Act of 1990 relating to the completion of a building.

“commencement notice” means a notice referred to in section 6(2)(k) of the Act of 1990.

“designated liable person” has the meaning given to it in section 653V of this Part.

“development” is the construction of new buildings and the extension, alteration or demolition of existing buildings. It also covers engineering operations such as levelling, construction of roads, and the laying of sewers, or water or gas mains which adapt the land for materially altered use.

“draft map” is the initial map prepared and published by a local authority indicating land within its functional area which meets the relevant criteria to be within the scope of the tax.

“final map” is the final map prepared and published by a local authority identifying land within its functional area that is within the scope of the tax.

“gross floor space” in relation to a building, means the area ascertained by the internal measurement of the floor space on each floor of the building, including internal walls and partitions.

“land which satisfies the relevant criteria” is land that meets the criteria provided for in section 653B.

“liability date”, in respect of a year, means 1 February in that year.

“liable person” is the owner or the person entitled to develop the relevant site.

“local authority” means a local authority for the purposes of the Local Government Act 2001.

“local authority consent” is consent provided for a local authority’s own development.

“market value” in relation to any assets means the price which those assets might reasonably be expected to fetch on a sale in the open market.

“Minister” means the Minister for Finance.

“permission regulations” means regulations made under section 33, 37I, 43, 172(2), 174, 177N or 177AD of the Planning and Development Act 2000.

“personal data” has the same meaning as it has in Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016.

“planning application” means an application for permission for the development of land made in accordance with, and required by, permission regulations.

“planning permission” means a permission granted under section 34, 37, 37G, 170 or 177K of the Planning and Development Act 2000.

“planning permission period” means, in relation to a grant of planning permission, the appropriate period as per section 40 of the Planning and Development Act 2000, including where that period is extended under section 42 of that Act.

“residential property” is any building which is in use as, or is suitable for use as, a dwelling including sheds or garages and yards or gardens not exceeding 0.4047 hectares usually enjoyed with the residential property, as defined in the Finance (Local Property Tax) Act 2012.

“relevant site” is a site included in the revised map most recently published under section 653M, excluding existing habitable homes and gardens.

“residential development” includes developments which are ancillary to the development and which are necessary for the proper planning and development of the area in question.

“residential zoned land tax” is an annual tax, calculated at 3% of the market value of land within its scope.

“return date” in respect of a year means 23 May in that year.

“revised map” is a map to be prepared and published by a local authority annually by 31 January, commencing in 2025 identifying land within its functional area that is within the scope of the tax.

“self-assessment” means an assessment by or on behalf of a liable person of the amount of residential zoned land tax payable by the liable person in respect of a relevant site in relation to a liability date.

“site” means any area of land identified on a map by a local authority.

“supplemental map” is a map prepared and published by a local authority, subsequent to the draft map, updated for land in respect of which submissions under section 653D have been made or for land which meets the relevant criteria for inclusion on the map 1 month prior to the publication of the supplemental map.

“TIN” means a tax reference number (within the meaning of section 891B) or a TIN within the meaning of section 891F.

“vacant or idle land” is land that, having regard only to authorised development under the Planning and Development Act 2000, is not required for, or integral to, the operation of a trade or profession being carried out on, or adjacent to, the land.

“valuation date” shall be construed in accordance with section 653R, which in general means the date on which a relevant site is to be valued for the purposes of calculating the charge to residential zoned land tax, subject to sections 653AG and 653AH.

(2) Local authority consent will have the same meaning as planning permission in this Part apart from in the definition of “planning permission period” in subsection (1) and in the definition of “relevant appeal” in section 653AF(1). This ensures that throughout Part 22A, a local authority consent is only excluded from the meaning of “planning permission” for the purposes of defining the term “planning permission period” and for the purpose of defining the term “relevant appeal” in section 653AF(1). All other references to “planning permission” include a local authority consent.

Relevant Date: Finance Act 2024