Linkedin
Facebook
Email
more
The Finance Act 2024 has introduced a revision to the Vacant Homes Tax (VHT), increasing the rate from five to seven times the standard Local Property Tax (LPT). This adjustment applies to the tax period starting 1 November 2024, to 31 October 2025 and continues for all subsequent periods.
Who does the VHT apply to?
The VHT is levied on residential properties in Ireland that are occupied for less than 30 days within a chargeable period. Property owners whose homes meet this criteria are liable to pay the tax, which is based on a multiple of the property’s LPT. The rate hike is designed to reduce the number of vacant homes and boost housing availability.
Exemptions
To comply, property owners should review their occupancy records and determine if they are liable to the tax.
There are eight scenarios where an exemption can be claimed on a VHT return.
These relate to properties:
- Where the owner has died.
- Where a Grant of Representation was issued.
- Which are actively marketed for sale.
- Which are actively marketed for rent.
- Which are subject to certain Court Orders.
- Which have underwent structural works.
- Which are unoccupied due to illness of owner.
- Which are owned by a North-South implementation body.
Next steps if you are eligible to pay the VHT
Filing a return is necessary if your property meets the vacancy criteria. The VHT return must be filed online on or before 7 November following the end of the chargeable period, if:
- There is a liability to VHT in the period covered by the return or
- A person is claiming one of the eight VHT specific exemptions outlined above.
Certain records must be retained evidencing the use of a property.
Contact our Private Client Services tax team if you would like to discuss the application of this tax to your property interests.
