The Vacant Homes Tax (VHT), introduced by Finance Act 2022, applies to residential properties that are occupied as a dwelling for less than 30 days in a chargeable period. It will not apply to derelict properties or properties unsuitable for use as a dwelling.
VHT is operated on a self-assessed basis. This means that the chargeable person – generally the owner of the property – is required to determine whether or not they have a liability to VHT and to satisfy their pay and file obligations if any.
The rate of VHT for a property is three times the basic rate of Local Property Tax applicable.
Exemptions from VHT include:
- properties recently sold or currently listed for sale or rent
- properties vacant due to the occupier’s illness or long-term care
- properties vacant as a result of significant refurbishment work
- properties prohibited from sale or occupation by a court order
- properties which were the sole or main residence of a deceased chargeable person in either the chargeable period or in the 12-month period prior to the commencement of the chargeable period
- properties which were the sole or main residence of a deceased chargeable person where a grant to administer the estate issues in the chargeable period and for any chargeable period following such a grant, where the administration of the estate has not yet completed.
VHT is not a charge on property (unlike LPT) and evidence of compliance with VHT provisions will not form part of the conveyancing process of a property.
Chargeable persons are obliged to provide records on request to Revenue to show that a property was in use as a dwelling for 30 days or more in a chargeable period. Where such records are not provided, Revenue can deem the property to be vacant property for the purposes of VHT.
VHT is not deductible for the purposes of calculating profits or gains that are charged to income tax, corporation tax or capital gains tax.
The first chargeable period for VHT is from 1 November 2022 to 31 October 2023.
The due date for filing VHT returns is 7 November after the end of the chargeable period and the due date for paying VHT is the following 1 January.