653AP Amount of vacant homes tax

Summary

The amount of vacant homes tax that will be due for a residential property in a chargeable period is calculated by reference to a formula. The formula provides that the charge to vacant homes tax will be based on the liability to local property tax before the liability to local property tax is adjusted to take account of the Local Adjustment Factor. The Local Adjustment Factor is provided for in Section 20 of the Finance (Local Property Tax) Act 2012. The liability to local property tax to be applied in the calculation of the vacant homes tax is the liability as at the liability date for local property tax for the year in which the chargeable period for vacant homes tax commences.

Details

• (1) The amount of vacant homes tax to be charged in respect of the first chargeable period that commenced on 1 November 2022 is 3 times the amount of local property tax payable for the year in which the chargeable period ends (before any local authority adjustment) i.e., 2023.
• (2) The amount of vacant homes tax to be charged in respect of the chargeable period that commenced on 1 November 2023 is 5 times the amount of local property tax payable for the year in which the chargeable period ends (before any local authority adjustment) i.e., 2024.
• (3) The amount of vacant homes tax to be charged in respect of the chargeable period that commenced on 1 November 2024, and all future chargeable periods, is 7 times the amount of local property tax payable for the year in which the chargeable period ends (before any local authority adjustment).

Relevant Date: Finance Act 2024