Chapter 4

Exemptions

653BC Exemptions

This section sets out the exemptions that are available from vacant homes tax. The exemptions must be claimed by a chargeable person in their vacant homes tax return for each chargeable period. There are eight exemptions from vacant homes tax.

(a) An exemption may be claimed where:

• the chargeable person in relation to the property died during the chargeable period or in the 12-month period prior to it, and
• the chargeable person occupied the property as his or her sole or main residence immediately before his or her death.

(b) An exemption may be claimed where a Grant of Representation (within the meaning of the Succession Act 1965) has recently issued to the estate of a person who was, prior to their death, the chargeable person in relation to the property, that person having lived in the property as his or her sole or main residence. This will apply for:

• the chargeable period in which the Grant of Representation issues, and
• for each chargeable period thereafter up to and including the chargeable period preceding the chargeable period in which the valuation date (as defined) of the taxable inheritance (as defined) comprising the property falls.

The valuation date for an inheritance means the date that the person administering the estate of a deceased person can retain the asset, the date the person administering the estate actually retains the asset or the date that the asset is given to the person who is inheriting it, whichever date arises first.

(c) An exemption may be claimed where the residential property was being actively marketed for sale in the chargeable period and the following conditions are met:

• the price sought for the property did not exceed the price which the property would be expected to achieve on the open market, and
• no conditions attached to the sale which were designed to impede or disrupt the sale of the property.

(d) An exemption may be claimed where a residential property was being actively marketed for rent in a chargeable period and the following conditions are met:

• the rent sought for the property did not exceed market rent (as defined), and
• no conditions attached to the tenancy which were designed to impede or disrupt the negotiation of a tenancy agreement in respect of the property.

(e) An exemption may be claimed where the occupation or sale of the property in the chargeable period was prohibited by a Court Order.

(f) An exemption may be claimed where the property underwent structural works, substantial repairs or substantial refurbishment in the chargeable period. The works had to be ongoing for a period of not less than 6 months, must have been carried out without undue delay and one of the following conditions is satisfied:

• it is certified by a registered professional or a chartered engineer (as defined) that the occupation of the property while the works were carried out would have posed an actual threat to the health and safety of an occupant and, if planning permission was required, it was obtained prior to the works commencing, or
• the cost of the works was more than one fifth of the market value of the property immediately before the works commenced.

(g) An exemption may be claimed where the property was in use as a dwelling for less than 30 days in the chargeable period by reason of the chargeable person ceasing to occupy the property as a result of their mental or physical infirmity, that person having previously resided in the property as their sole or main residence. The physical or mental infirmity must be certified by a medical practitioner (as defined).

(h) An exemption may be claimed where the chargeable person in respect of the residential property is an implementation body within the meaning of the British-Irish Agreement Act 1999.

Relevant Date: Finance Act 2024