The publication of Draft Residential Zoned Land Tax Maps by local authorities was announced today by the Minister for Finance, Paschal Donohoe T.D. and the Minister for Housing, Local Government and Heritage, Darragh O’Brien T.D.
Landowners have until 1st January 2023 to make a submission to the relevant local authority as to whether or not their land, on the map, satisfies the criteria to be liable to the tax.
This is part of the implementation of the Residential Zoned Land Tax (RZLT).
What is RZLT?
As you may remember, Residential Zoned Land Tax (RZLT) was introduced by Finance Act 2021 as part of the Government’s ‘Housing for All – a New Housing Plan for Ireland’.
Land within the scope of RZLT will be liable to an annual 3% tax based on its market value from 1st January 2024 onwards.
RZLT will apply to land that on, or after, 1st January 2022, is:
In other words, where the land is zoned as suitable for residential development and serviced after 1st January 2022, tax will be first due in the third year after it comes within scope.
The primary objective of RZLT is activate land for residential development and not to increase the Government’s tax revenue.
It will operate on a self-assessment basis, which places the filing and payments obligations on the landowners. You must retain detailed records to enable the Revenue Commissioners to verify the correct amount of RZLT due and payable.
What should you do?
If you own land liable to RZLT, you must register for the tax.
You will be able to register for RZLT from late 2023.
You will be required to file an annual return to Revenue and pay any liability on or before 23rd May of each year, beginning in 2024.
Please be aware that interest, penalties and surcharges will apply in relation to cases of non-compliance, for example:
There are a number of exclusions from RZLT.
Certain properties are excluded from RZLT such as existing residential properties.
Homeowners will not have to pay the RZLT if they own a dwelling which appears on the local authorities’ RZLT Maps, and this property is subject to Local Property Tax (LPT). In other words, residential properties liable for Local Property Tax (LPT) are not subject to RZLT.
If, however, your garden/yard/land is greater than 0.4047 hectares (one acre) then you must register for RZLT.
No RZLT, however, is payable by owners of these properties.
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Please be aware that the information contained in this article is of a general nature. It is not intended to address specific circumstances in relation to any individual or entity. All reasonable efforts have been made by Accounts Advice Centre to provide accurate and up-to-date information, however, there can be no guarantee that such information is accurate on the date it is received or that it will continue to remain so.. This information should not be acted upon without full and comprehensive, specialist professional tax advice.
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