This Note is for information purposes only. Vacant Homes Tax (VHT) is not a charge on property, in contrast to Local Property Tax (LPT). Compliance with the requirements of the VHT legislation is not a matter of title. An investigation of title need not extend to the question of whether or not Vacant Homes Tax has been paid.

VHT is an annual self-assessed tax, that applies to vacant residential properties, liable to LPT, that have been occupied for less than 30 days in a 12-month chargeable period. VHT was introduced by Section 96 of the Finance Act 2022 and is contained in Part 22B of the Taxes Consolidation Act 1997 (TCA 1997). An exemption may be available in certain circumstances. Any liability to VHT is in addition to a liability to Local Property Tax (LPT).

For a step by guide see the Revenue website. Revenue has also published a Tax and Duty Manual, Vacant Homes Tax - Part 22B-01-01. The Manual outlines in detail when VHT applies, when properties are outside the scope of the tax, the obligations on chargeable persons, Revenue powers and certain exemptions that can be claimed.

Each chargeable period commences on 1 November and ends on 31 October of the following year. Owners of vacant properties are required to self-assess their liability to VHT by looking back over the previous chargeable period to determine if their property was liable in that chargeable period. Where a property has been occupied for less than 30 days, a return must be filed electronically within 7 days of the end of the relevant chargeable period, i.e. by 7 November. The first chargeable period for VHT commenced on 1 November 2022 (the “initial chargeable period”), with the first VHT return to be submitted to Revenue by 7 November 2023, 7 days following the 1 November liability date.

VHT is charged annually, with a rate for the initial chargeable period, at three times the base LPT rate (the rate excluding any local adjustment factor), increasing to five times from November 2023, following Budget 2024, on the value of liable residential properties.

Even if the taxpayer has assessed that VHT does not apply to a property, Revenue may still ask for confirmation of the status of the property and for the submission of a VHT Return. To confirm the status of the property, evidence must be provided that, during the chargeable period, the property has been occupied, sold, or subject to a qualifying tenancy.

A register of vacant homes and their associated chargeable persons is being established by Revenue and will be continually updated as necessary. The legislation provides for the exchange of information between the Revenue Commissioners and other bodies such as local authorities for the purposes of administering the tax and maintaining the register. VHT will operate on a self-assessment basis. The legislation also provides for penalties, interest and a late filing surcharge to be applied in cases of non-compliance.