653AGA. Deferral of residential zoned land tax in respect of grant of planning permission

(1) This section applies where—

(a) a planning permission has been granted in respect of a relevant site,

(b) that planning permission, subject to subsection (2), is not the subject of a relevant appeal or relevant petition, and

(c) no commencement notice in respect of the development of the relevant site has been lodged with the local authority in whose functional area the relevant site is situated.

(2) Where a relevant appeal or relevant petition is made in respect of a grant of planning permission and the relevant appeal or relevant petition is determined such that the grant of planning permission is upheld, a reference in this section to the date of grant of planning permission shall be read as a reference to the date on which that relevant appeal or relevant petition, as the case may be, is determined.

(3) Subject to subsections (4), (5) and (6), where this section applies, so much of any residential zoned land tax arising in respect of a liability date, in relation to a relevant site, after the date of grant of planning permission in respect of the relevant site shall, notwithstanding section 653Q(2), not be due and payable until the earlier to occur of—

(a) the expiration of the period of 12 months from the date of grant of planning permission, and

(b) the date on which there is a change in the ownership of the relevant site, or part thereof,

and residential zoned land tax so deferred shall be referred to in this section as ‘pre-development deferred residential zoned land tax’.

(4) (a) In this subsection—

“group” has the same meaning as it has in section 616;

“member of a group” has the same meaning as it has in section 616.

(b) This subsection applies where—

(i) a member of a group of companies (in this subsection referred to as the ‘transferor company’) transfers a relevant site or part of a relevant site, as the case may be, in respect of which this section applies to another member of the group (in this subsection referred to as the ‘transferee company’), and

(ii) the transferor company and the transferee company are within the charge to corporation tax.

(c) Where this subsection applies, for the purpose of this section—

(i) the relevant site or part of the relevant site, as the case may be, that is transferred is deemed to have been acquired by the transferee company at the time it was acquired by the transferor company,

(ii) the transferee company shall, from the date of the transfer, be deemed to be the liable person in respect of any pre-development deferred residential zoned land tax relating to the relevant site or part of the relevant site, as the case may be, in respect of a liability date prior to the transfer referred to in paragraph (b), and

(iii) the transfer of the relevant site or part of the relevant site, as the case may be, to the transferee company shall not give rise to a change of ownership of the relevant site or part of the relevant site for the purposes of subsection (3)(b).

(d) Where pre-development deferred residential zoned land tax becomes due and payable in accordance with subsection (3) or (6) in relation to the relevant site, or the part of the relevant site, as the case may be, which was transferred, the transferor company and transferee company shall be jointly and severally liable for such tax.

(5) (a) This subsection applies where a commencement notice in respect of development of a relevant site in respect of which this section applies has been lodged with the local authority in whose functional area the relevant site is situated, before the expiration of the period referred to in subsection (3)(a), such that—

(i) section 653AG applies and the site ceases to be treated as a relevant site pursuant to that section, or

(ii) 653AH applies,

as appropriate.

(b) Where this subsection applies, for each liability date falling within the period from the date of grant of planning permission to the date the commencement notice concerned is lodged—

(i) the relevant amount referred to in paragraph (c) or (d), as the case may be, shall be treated as “deferred residential zoned land tax” within the meaning of section 653AH for the purposes of that section, and

(ii) the relevant amount referred to in paragraph (e) shall no longer be due and payable.

(c) Where the development consists of residential development only, the relevant amount is the amount of pre-development deferred residential zoned land tax.

(d) Where the development consists of residential development and development other than residential development, the relevant amount is the amount represented by W in the formula:

W = (A × (B/C)) × D

where—

A is the market value of the relevant site on the valuation date applicable to each liability date,

B is, in accordance with the planning permission concerned, the portion of the gross floor space for all of the development, to which the planning permission relates, which comprises dwellings,

C is the total gross floor space for all of the development to which the planning permission relates, and

D is the rate of 3 per cent.

(e) Where the development consists of development other than residential development, in whole or in part, the relevant amount is the amount represented by Y in the formula—

Y = (Z - (A × (B/C))) × D

where—

Z is the market value of the relevant site on the valuation date applicable to each liability date,

A is the market value of the relevant site on the valuation date applicable to each liability date,

B is, in accordance with the planning permission concerned, the portion, if any, of the gross floor space for all of the development, to which the planning permission relates, which comprises dwellings,

C is the total gross floor space for all of the development to which the planning permission relates, and

D is the rate of 3 per cent.

(6) (a) Where—

(i) there is a change of ownership of part of a relevant site to which this section applies,

(ii) that change of ownership does not result in the entire relevant site having changed ownership, and

(iii) that change of ownership is the earlier to occur of the events referred to in paragraphs (a) and (b) of subsection (3),

(referred to in this subsection as a ‘part ownership change’) the amount of any pre-development deferred residential zoned land tax in respect of that part of the relevant site so transferred which—

(I) arises in respect of a liability date that falls in the period from the date of grant of planning permission to the date of the part ownership change, and

(II) becomes due and payable in accordance with subsection (3) on the date of the part ownership change (referred to in this subsection as the ‘part ownership change liability’),

shall be the amount represented by A in the formula—

A = (B – C) × D/E

where—

B is the pre-development deferred residential zoned land tax in respect of the relevant site (as that relevant site was comprised prior to any change of ownership),

C is the sum of part ownership change liabilities arising in respect of the relevant site prior to the change of ownership referred to in subparagraph (i),

D is the area, in square metres, of the part of the relevant site which is transferred pursuant to the part ownership change, and

E is the total area, in square metres, of the relevant site as it was comprised immediately prior to the change of ownership referred to in subparagraph (i).

(b) Following a part ownership change, subsection (3) shall continue to apply as if the part ownership change did not occur.

(7) Where pre-development deferred residential zoned land tax becomes due and payable in accordance with subsection (3) or (6), the liable person shall amend each return in respect of each liability date concerned and pay any tax and interest due accordingly.

(8) This section only applies if a return referred to in section 653T is delivered to the Revenue Commissioners in respect of each liability date to which this section refers, notwithstanding subsection (3).

(9) Where this section has been applied in respect of a planning permission pertaining to land representing a relevant site, it shall not apply in respect of any other planning permission pertaining to that land or any portion of that land.