Revenue Note for Guidance

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Revenue Note for Guidance

Chapter 5

Abatements

Summary

This Chapter deals with the repayment of residential zoned land tax where a relevant site is determined to be unsuitable for development; deferral of residential zoned land tax where an appeal against inclusion on the map prepared by the local authority is ongoing; the deferral of, or exemption from, residential zoned land tax where certain legal proceedings delay the commencement of construction; the deferral of residential zoned land tax in the course of the regularisation of unauthorised development, either by way of an application to retain unauthorised development or an application for substitute consent; the deferral of residential zoned land tax in the 12 month period from the date of grant of planning permission in respect of the site, and while construction of housing is in progress within the timeframe set out in the planning permission granted in respect of the relevant site; and the exemption from residential zoned land tax in respect of relevant sites which are subject to relevant contracts.

653AD Repayment of tax on site not suitable for development

Summary

This section provides for a situation where, following the publication of a final map, it is determined that the site or part of the site cannot be developed due to its physical condition.

Details

(1) This section applies where, following publication of a final map, the local authority, in consultation with any person referred to in article 28 of the Planning and Development Regulations 2001, determines that the site or part of the site is affected in terms of its physical condition to the extent that it precludes development of the site or part of the site. The impediment to development may include contamination or the presence of archaeological or historic remains.

(2) A determination made by a local authority under subsection (1) will be notified to the liable person in writing as soon as practicable thereafter.

(3) The written notification will specify the date from which the site or part of the site concerned is determined to have been affected to such an extent that precludes development.

(4) A site, or part of a site, so affected to the extent that it precludes its development, will not be considered a relevant site from the date specified in subsection (3).

(5) Where residential zoned land tax has been paid in respect of a site which is later determined to be unsuitable for development due to its physical condition, a claim for a repayment of that tax can be made.

(6) Where only part of a site is affected and a person makes a claim for a repayment of tax paid in respect of that part, the amount to be claimed is determined by the following formula:

        C = T × (Apart/Atotal)

where—

C is the amount of tax which can be claimed in accordance with this subsection,

T is the total amount of residential zoned land tax paid in respect of the site,

Apart is the area of the site, in square metres, which is affected to the extent that development of same is precluded, and

Atotal is the total area of the site in square metres.

(6A) This subsection applies where tax has been deferred after the date of grant of planning permission in accordance with section 653AGA, and the local authority makes a determination that the site is unsuitable for development due to its physical condition and that it was so affected before the grant of planning permission.

(6B) Where subsection (6A) applies, on the making of a claim, the pre-development deferred residential zoned land tax in respect of the site, or the part of the site so affected, shall not be due and payable.

(6C) Where only part of a site is so affected, the amount of pre-development deferred residential zoned land tax that is no longer due and payable is determined by the formula in subsection (6), subject to the following modifications:

C is the amount of pre-development deferred residential zoned land tax which is not due and payable,

T is the total amount of pre-development deferred residential zoned land tax in respect of the site,

Apart is the area of the site in square metres, which is affected to the extent that development of same is precluded, and

Atotal is the total area of the site, in square metres.

(7) Where tax has been deferred on the commencement of residential development, in accordance with section 653AH, and it is subsequently determined that the site, or part thereof, cannot be developed due to matters that affected its physical condition from a date prior to the date on which the deferral commenced, this subsection applies.

(8) Where subsection (7) applies, on the making of a claim, the deferred residential zoned land tax in respect of the site, or part thereof so affected, shall not be due and payable.

(9) Where only part of a site is so affected, the amount of deferred residential zoned land tax that is no longer due and payable is determined by the formula in subsection (6), subject to the following modifications:

where—

C shall be the amount of deferred residential zoned land tax which is not due and payable,

T shall be the total amount of deferred residential zoned land tax in respect of the site,

Apart shall be the area, in square metres, of the part of the site affected in the manner described in subsection (1), and

Atotal shall be the total area of the site, in square metres.

Relevant Date: Finance Act 2024