The Vacant Homes Tax (VHT) was introduced in 2023.
It is an annual tax that applies on November 1st each year.
VHT applies to property that can be lived in and has been stayed in for less than 30 days in the previous 12 months. The previous 12-month period is called the chargeable period. For 2024 VHT, the chargeable period is November 1st 2023 to October 31st 2024.
What properties are not liable to Vacant Homes Tax?
VHT does not apply to properties that have been lived in for 30 days in the chargeable period.
Even if the property has not been lived in for 30 days, VHT does not apply (and you do not need to make a return or payment) if the property:
• Changed ownership during the chargeable period
• Was exempt from Local Property Tax
• Was rented for at least 30 days to a registered tenant who is not related to the owner or a connected person
Who is a connected person for the purposes of the VHT?
If you are the owner, a connected person is your spouse or civil partner, or a relative of you or your spouse or civil partner, or that relative’s spouse or civil partner. A relative is a brother or sister, or someone you are descended from or someone descended from you.
Are there any exemptions from the Vacant Home Tax (VHT)?
There are exemptions from VHT you can claim in certain circumstances. These include properties that are unoccupied due to the owner’s illness or death; properties advertised for sale or rent; properties unoccupied due to court order, or properties unoccupied due to some types of work, repair or refurbishment.
To claim an exemption, you must make a tax return for VHT.
Who must pay Vacant Homes Tax?
If a property is liable to VHT, it is paid by the person who pays Local Property Tax on the property. This is usually the owner. If there are joint owners, they should nominate one owner who will be responsible for making VHT returns and payments.
If you do not think your property is liable, Revenue may ask you to confirm that it is not liable and may ask you to make a VHT return. You should keep records to show the use of the property. Records could include, but are not limited to utility bills, waste collection bills, evidence of short-term lettings.
How much is Vacant Homes Tax?
The 2024 rate of VHT on a property is five times the basic rate of Local Property Tax for the property. The basic rate of Local Property Tax depends on the value of the property.
The 2023 rate was three times the basic rate of Local Property Tax. This was for the chargeable period November 1st 2022 to October 31st, 2023.
When do I need to make a tax return for Vacant Homes Tax?
If your property is liable for VHT, you must make a VHT return by November 7th. If a VHT return is late, there is a 5% surcharge. If the return is over two months late, there is a 10% surcharge.
How do I make a tax return for Vacant Homes Tax?
You must make your VHT return online using Revenue’s VHT portal.
You must pay, or set up a debit arrangement to pay, by January 1st.
