653AFB Deferral of tax during appeals in respect of applications to retain unauthorised development or for substitute consent

Summary

This section provides for situations where land which meets the relevant criteria is only within the scope of residential zoned land tax because it is subject to an unauthorised use, and where an application to regularise the planning status of the land has been denied and the landowner has brought an appeal against, or requested a judicial review of, that decision.

Details

This subsection defines ‘relevant appeal’ and ‘relevant petition’ for the purpose of this section.

(1) A relevant appeal is an appeal to An Bord Pleanála brought by a landowner in respect of an application to retain unauthorised development which has been denied by a local authority, where the land would not be within the scope of residential zoned land tax if it was authorised development.

A relevant petition

• (a) includes an application for the judicial review of a decision of a local authority or An Bord Pleanála not to approve a landowner’s application to retain an unauthorised development, or an appeal of a determination of a judicial review of a decision of a local authority or An Bord Pleanála not to approve a landowner’s application to retain an unauthorised development, where the land would not be within the scope of residential zoned land tax if it was authorised development, or
• (b) also includes an application for judicial review of a decision of An Bord Pleanála brought by a landowner in respect of an application for substitute consent which has been denied, or an appeal of a determination of a judicial review of a decision of An Bord Pleanála in respect of an application for substitute consent which has been denied, where the land would not be within the scope of residential zoned land tax if it was authorised development.

(2) This section applies where the land would not be within the scope of residential zoned land tax if it was subject to an authorised development at the time that the application to retain unauthorised development, or the application for substitute consent, was made, and a relevant appeal or petition is brought in respect of that land.

(3) This subsection applies where this section applies and a relevant appeal is determined in favour of the landowner such that permission to retain the unauthorised development is granted.

(4) Where a relevant appeal is determined in favour of the landowner such that permission to retain the unauthorised development is granted, the site will not be a relevant site for the purposes of residential zoned land tax with effect from the date on which the application to retain the unauthorised development was made.

(5) Where a site ceases to be a relevant site for the purposes of residential zoned land tax as a result of a relevant appeal being determined in favour of the landowner such that permission to retain the unauthorised development is granted, the owner of the site can make a claim for a refund of residential zoned land tax paid from the date the application to retain the unauthorised development was made.

(6) Where a liable person chose, in accordance with section 653AFA, to defer payment of residential zoned land tax during the determination of the application to which the relevant appeal or petition relates, they may continue to defer the tax which was deferred in the course of the determination of that application until the relevant appeal or petition is determined.

(7) A liable person may make a claim under this section to defer residential zoned land tax for the period from the date on which they make the relevant appeal or petition until it is determined.

(8) A claim to defer residential zoned land tax for the duration of a relevant appeal or petition may be made by a liable person at a return date which falls during the period of the relevant appeal or petition.

(9) Where a liable person defers payment under subsection (6) (i.e. continues to defer the residential zoned land tax to which section 653AFA relates) or subsection (7) (i.e. defers residential zoned land tax arising in the course of a relevant appeal or petition), and the relevant appeal is found in favour of the owner of the site such that permission to retain the unauthorised development is granted and the site is no longer a site to which the tax applies, any tax so deferred will not be due and payable.

(10) Where a liable person defers payment under subsection (6) or (7), and the appeal is not found in favour of the owner of the site such that permission to retain the unauthorised development is not granted, the liable person must amend any return in which a deferral was claimed and pay any tax and interest due.

(11) Where a relevant petition results in an owner making a further application to retain unauthorised development, or a further application for substitute consent, within three months of the court’s determination of the relevant petition, section 653AFA applies in respect of that application, subject to subsections (12) and (13) of this section.

(12) Where a liable person makes a further application as set out in subsection (11), and that application is not successful, such that permission to retain the unauthorised development is not granted, or substitute consent is not granted, the liable person must amend any return in which a deferral was claimed under section 653AFA(4) or subsection (7) from the date of the original application to retain unauthorised development, or for substitute consent, and pay any tax and interest due.

(13) Where a liable person makes a further application as set out in subsection (11), and that application is successful, such that permission to retain the unauthorised development or substitute consent is granted, then:

• (i) the site will not be a relevant site for the purposes of residential zoned land tax with effect from the date the original application to retain the unauthorised development, or for substitute consent, was made,
• (ii) the owner of the site can make a claim for a refund of residential zoned land tax paid from the date the original application to retain the unauthorised development, or for substitute consent, was made, and
• (iii) where a liable person deferred payment of residential zoned land tax under subsection (6) or (7) of this section, any tax so deferred is no longer due and payable.

(14) Where a person defers payment under subsection (6) or (7) of this section for the duration of a relevant petition, and the court remits the application to the local authority or An Bord Pleanála for further consideration, section 653AFA applies in respect of that application, subject to subsections (15) and (16) of this section.

(15) Where the court remits the application to the local authority or An Bord Pleanála for further consideration and permission to retain the unauthorised development is not granted or substitute consent is not granted, the liable person must amend any return in which a deferral was claimed and pay any tax and interest due.

(16) Where the court remits the application to the local authority or An Bord Pleanála, and permission to retain unauthorised development is granted, or substitute consent is granted, tax deferred under subsection (6) or (7) is not due and payable.

(17) Where a claim made under subsection (6) or (7) in respect of a relevant petition is determined and subsections (11) to (16), inclusive, do not apply, the liable person must amend any return in which a deferral was claimed and pay any tax and interest due.

(18) Where the liable person disposes of the land in question while the relevant appeal or petition is pending, they must amend any residential zoned land tax returns in which a claim to defer payment was made under this section and pay any tax and interest due.

Relevant Date: Finance Act 2024