Chapter 2

Charge to vacant homes tax

Summary

Chapter 2 sets out the charge to vacant homes tax and provides for the calculation of tax due.

653AO Charge to vacant homes tax

Summary

This section provides that a tax to be known as “vacant homes tax” will be charged, levied and paid in respect of a residential property for any chargeable period in which the property is in use as a dwelling for less than 30 days. It also provides that certain properties are outside the scope of the tax.

Details

(1) Vacant homes tax will be charged and levied in a chargeable period on a residential property that is in use as a dwelling for less than 30 days in that chargeable period other than a property specified in paragraph (a), (b) or (c).

• (a) removes from the scope of vacant homes tax a residential property if no local property tax was payable in respect of that property for the year in which the chargeable period ends
• (b) removes from the scope of vacant homes tax a property that was the subject of a relevant tenancy (as defined) for a period of no less than 30 days in the chargeable period
• (c) removes from the scope of vacant homes tax a property that was the subject of a sale (as defined) in the chargeable period.

(2) Vacant homes tax is payable in respect of a residential property for a chargeable period by the person who is the chargeable person on the relevant date. In general, this means that vacant homes tax is to be paid by the person who owns a property on the day after the last day of the chargeable period

(3) Where there is more than one chargeable person in respect of a residential property on the relevant date, each chargeable person will be jointly and severally liable for the vacant homes tax payable.

(4) Vacant homes tax can be paid by another person on behalf of the chargeable person.

Relevant Date: Finance Act 2024