Overview
The Vacant Homes Tax (VHT) was introduced in Budget 2022 as a measure taken by the Government to increase housing supply. VHT is an annual tax and is payable in November each year. The second VHT return is due on/or before 07 November 2024.
If applicable, VHT will be charged at the rate of five times the Local Property Tax (“LPT”) charge, excluding the local adjustment factor. Therefore, if the basic LPT charge for a property is €315 per annum, the VHT liability will be €1,575 (€315*5).
Which properties are subject to the VHT?
VHT will apply where a property,
- Is suitable for residential accommodation, but
- Has been occupied for less than 30 days in the chargeable period.
For 2024, the chargeable period commenced on 01 November 2023 and ceased on 31 October 2024.
Essentially, VHT is aimed at long-term vacant properties. However, there are exemptions available which should ensure owners are not unfairly charged where the property is vacant for genuine reasons.
Properties which may fall within the scope of this tax may include holiday homes, which remain unoccupied for the most part of the chargeable period, residential properties that were bequeathed to the taxpayer, but are currently neither occupied nor let, etc.
What steps need to be undertaken by a property owner?
We have set on page 2 a flowchart that should assist the property owner in determining,
- If the property is liable to VHT, and
- The relevant filing requirements.
How can MC2 Accountants help?
If you are of the view that a property may be subject to VHT, please contact us. Based on the facts of the case involved, we will determine if the property falls within the scope of VHT or if a VHT exemption can be claimed.
Where required, we can assist with the submission of the relevant VHT return and processing the payment.
