653AG Sites developed wholly or partly for purpose other than residential development

Summary

This section sets out how the tax applies to sites which are zoned suitable for mixed use purposes, including residential use. In such sites, where non-residential development has commenced, the part of the site that is being developed for non-residential purposes shall not be a relevant site.

Details

(1) This section applies to a relevant site that is included in a development plan or local area plan as being zoned for a mixture of uses, including residential use, and which is to be developed wholly or partly for a purpose other than residential development, in accordance with planning permission granted in respect of same.

(2) Subject to subsection (6), where this section applies and a commencement notice (or the first commencement notice where there is or will be more than one) is lodged with a local authority under the grant of planning permission for the site, the portion of the site being developed for non-residential purposes will cease to be a relevant site for the purposes of residential zoned land tax from the date of the first commencement notice in respect of which works comprising substantial activity within the timeframe specified in the notice, commence.

(3) Where a site is being developed partially for residential use and partially for non-residential use, the market value of the relevant site that is developed for residential use is calculated in accordance with the formula set out in subsection (4). In this section, this part of the site is referred to as the ‘liable part of the relevant site’ and its market value, as calculated under subsection (4), is to be used as if it were the market value of the relevant site for the purposes of calculating the amount of residential zoned land tax on the liability date immediately after the lodgement of the commencement notice in respect of the site, or the first commencement notice, as the case may be.

(4) The formula referred to in subsection (3) to determine the liable part of the relevant site is:

     A × (B/C)

where:

A is the market value of the relevant site on the day before the (first) commencement notice was lodged,

B is the gross floor space relating to dwellings, in accordance with the grant of planning permission, and

C is the total gross floor space for all of the development.

(5) When subsection (4) is relied upon to determine the market value of the liable part of the relevant site to calculate the amount of residential zoned land tax due, the valuation date in respect of the liable part of the relevant site will be the liability date following the date on which the commencement notice was lodged.

(6) Where there is no substantial activity in relation to non-residential development within a reasonable period of time from the lodgement of the first commencement notice, the site shall not cease to be a relevant site, in accordance with subsection (2). This will remain the case until such time as substantial non-residential development activity commences.

(7) A liable person will make a declaration that this section applies to their relevant site, providing such information as is prescribed by the Revenue Commissioners. The declaration is to be made within 30 days of the lodgement of the (first) commencement notice. A liable person must have records available to show that they have complied with the requirements of this section.

Relevant Date: Finance Act 2021