With the imminent deadline for the Vacant Homes Tax fast approaching, property owners are urged to be mindful of their obligations.
The Vacant Homes Tax, designed to incentivise the sale or rental of unoccupied residential properties, carries a rate three times higher than the base Local Property Tax.
As the deadline looms, it is crucial for owners to ensure timely compliance and review the provided guidelines.
This introduction serves as a gentle reminder for owners to fulfil their responsibilities and avoid potential consequences.
Vacant Properties Tax Overview
In preparation for the upcoming deadline, it is crucial for homeowners to familiarise themselves with the Vacant Homes Tax and its implications.
The Vacant Homes Tax is a new tax that applies to residential properties liable to local property tax and are unoccupied. It is set at three times the base Local Property Tax (LPT) rate and aims to encourage owners of empty houses to put them up for sale or into the rental market.
The tax is self-assessed and due for payment before next January. There are exemptions from the tax, and owners should check the guidelines. Revenue is also establishing a register of vacant homes.
Property owners must determine their liability to the tax, regardless of receiving a letter from Revenue.
Filing a Tax Return: Essential Deadlines
The deadline for filing a return for the Vacant Homes Tax is approaching, and homeowners need to be aware of the important deadlines.
Today is the last day for homeowners to submit their returns for the new tax on unoccupied homes. The Vacant Homes Tax applies to residential properties that are liable for local property tax and are unoccupied.
The tax is set at three times the base Local Property Tax (LPT) rate and aims to encourage owners of empty houses to sell or rent them out.
The tax is self-assessed and must be paid before January.
It’s important for homeowners to review the guidelines for exemptions from the tax. Property owners, regardless of receiving a letter from Revenue, must determine their liability to the tax.
Exclusions and Guidelines for Owners
Owners should familiarise themselves with the exemptions and guidelines for the Vacant Homes Tax. The tax applies to residential properties that are liable to local property tax and are unoccupied. However, there are certain exemptions that owners should be aware of.
For example, newly built or refurbished residential properties occupied between 2nd November 2022 and 3rd November of this year are subject to the Local Property Tax (LPT) instead of the Vacant Homes Tax. Additionally, owners who can prove that their property is uninhabitable due to exceptional circumstances, such as extensive damage or structural issues, may also be exempt from the tax.
It is important for owners to carefully review the guidelines provided by Revenue to determine their eligibility for exemptions and ensure compliance with the Vacant Homes Tax.
Empty Properties Tax Procedure and Payment Choices
To navigate the Empty Homes Tax process and explore payment options, property owners must adhere to the guidelines provided by Revenue. Empty Homes Tax returns can be submitted through Revenue’s myAccount, ROS, or the LPT Portal.
The process involves reviewing property details, submitting the return, and making a payment if necessary. Property owners must determine their liability to the tax, regardless of receiving a letter from Revenue. The tax is based on the valuation of the property on the first day of the month, and newer properties must be valued as if they existed in their completed state on that date.
Additionally, around 800,000 homeowners have been reminded by Revenue to set out their payment options for the property tax, even if they have already paid it this year. The valuation of the property at 1st November 2021 determines the LPT on a residential property for 2024.
Estimating the Number of Empty Properties
Experts estimate that the State may have as many as 60,000 empty homes. Emptiness is defined as the property being occupied for fewer than 30 days in the year ending 1st November this year.
The Empty Homes Tax rate is three times the Local Property Tax (LPT) rate. For example, a house valued at €300,000 for the property tax would attract an empty home tax of €945 if unoccupied.
Revenue is in the process of establishing a definitive database of empty homes. This database will help accurately identify the number of empty homes and ensure that owners are complying with the Empty Homes Tax.
Final thoughts
In conclusion, the upcoming deadline for the Vacant Homes Tax serves as a reminder for property owners to fulfil their obligations and avoid potential consequences.
With the aim of encouraging the sale or rental of vacant houses, owners must ensure timely compliance with the self-assessed tax. By reviewing the guidelines and exemptions provided, property owners can accurately assess their liability to the tax and contribute to the establishment of a comprehensive register of vacant homes.
Time is of the essence, so owners must act promptly.
