Finance Act 2024
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Residential zoned land tax | ||
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114. Part 22A of the Principal Act is amended— | ||
(a) in section 653A(2), by the substitution of “other than in the definition of ‘planning permission period’ in subsection (1) and in the definition of ‘relevant appeal’ in section 653AF(1)” for “other than in subsection (1) and section 653AF(1)(a)”, | ||
(b) in section 653I— | ||
(i) in subsection (1)— | ||
(I) in paragraph (b), by the substitution of “section 653F,” for “section 653F, or”, | ||
(II) in paragraph (c), by the substitution of “section 653M(1), or” for “section 653M(1),”, | ||
(III) by the insertion of the following paragraph after paragraph (c): | ||
“(d) during the period beginning on 1 February 2025 and ending on 1 April 2025, to a local authority on a revised map for the year 2025 published in accordance with section 653M(1),”, | ||
and | ||
(IV) by the substitution of “requesting a change to the zoning of lands included in the draft map, supplemental map or revised map, as the case may be.” for “requesting a change to the zoning of lands included in the draft map or supplemental map, as the case may be.”, | ||
(ii) by the insertion of the following subsection after subsection (3): | ||
“(3A) (a) In a case in which a submission is made under subsection (1)(d), the local authority shall acknowledge receipt of the submission to the person who made that submission, in writing, not later than 30 April 2025. | ||
(b) The acknowledgement referred to in paragraph (a) shall include— | ||
(i) confirmation by the local authority as to whether, as at the date on which the acknowledgement issues, in respect of the lands, or any part of the lands, the subject of the submission— | ||
(I) planning permission has been granted in respect of development of the land which consists in whole or in part of residential development, and the planning permission period has not expired (in this section and section 653IA referred to as an ‘extant planning permission for residential development’), or | ||
(II) a planning application has been made in respect of the development of the land which consists in whole or in part of residential development, but, in relation to such planning application— | ||
(A) the local authority has not made a decision or, in a case where the planning application has been made to An Bord Pleanála under the Planning and Development (Housing) and Residential Tenancies Act 2016 , An Bord Pleanála has not made a decision, | ||
(B) in a case where the decision of the local authority is the subject of an appeal to An Bord Pleanála, the appeal is not determined, or | ||
(C) in a case where a decision of the local authority or An Bord Pleanála, as the case may be, is the subject of a judicial review, the judicial review is not determined, | ||
(in this section and section 653IA referred to as a ‘current planning application for residential development’), | ||
and | ||
(ii) in relation to an extant planning permission for residential development or a current planning application for residential development, as the case may be— | ||
(I) particulars of the planning application as required to be entered by the local authority on the register under section 7 of the Act of 2000, and | ||
(II) a copy of the location map provided with the planning application as required by article 22(2)(b) of the Planning and Development Regulations 2001 ( S.I. No. 600 of 2001 ).”, | ||
and | ||
(iii) in subsection (4)(c), by the insertion of “or, in a case in which a submission is made under subsection (1)(d), not later than 30 June 2025,” after “31 July 2024,”, | ||
(c) by the insertion of the following section after section 653I: | ||
“Exemption on submission of request for change to zoning of land included on revised map for the year 2025 | ||
653IA. (1) This subsection applies to a relevant site where— | ||
(a) a person has made a submission under subsection (1)(d) of section 653I in respect of lands which are, or include, such relevant site, | ||
(b) the submission referred to in paragraph (a) is acknowledged by the local authority in accordance with subsection (3A) of section 653I, and | ||
(c) as at the date on which the acknowledgement referred to in paragraph (b) is issued— | ||
(i) the relevant site is not the subject of an extant planning permission for residential development, and | ||
(ii) all of the relevant site is not the subject of one or more current planning applications for residential development. | ||
(2) Where subsection (1) applies to a relevant site, notwithstanding section 653Q, on the making of a claim by a liable person under this Part in relation to the relevant site, residential zoned land tax shall not be charged and levied in respect of that site on 1 February 2025. | ||
(3) This subsection applies to a relevant site where— | ||
(a) a person has made a submission under subsection (1)(d) of section 653I in respect of lands which are, or include, such relevant site, | ||
(b) the submission referred to in paragraph (a) is acknowledged by the local authority in accordance with subsection (3A) of section 653I, and | ||
(c) the relevant site is the subject of one or more current planning applications for residential development and the current planning application for residential development or, where there is more than one such applications, all of them taken together, are in respect of part, but not all, of a relevant site. | ||
(4) Such part of a relevant site referred to in subsection (3) as is not the subject of one or more current planning applications for residential development referred to in that subsection shall, for the purposes of subsection (5), be regarded as the eligible part of the relevant site. | ||
(5) Where subsection (3) applies to a relevant site, notwithstanding section 653Q, on the making of a claim by a liable person under this Part in relation to the relevant site, residential zoned land tax shall not be charged and levied in respect of the eligible part of the relevant site on 1 February 2025. | ||
(6) A claim referred to in subsection (2) or (5) shall be made in such form and contain such particulars as the Revenue Commissioners may prescribe.”, | ||
(d) in section 653O, by the insertion of the following subsection after subsection (3): | ||
“(3A) Where— | ||
(a) a site would, but for this subsection, become a relevant site on a particular date, | ||
(b) a planning permission was granted in respect of a portion of the site prior to that date, and | ||
(c) the planning permission period has not expired on that date, | ||
that portion of the site referred to in paragraph (b) and the remainder of the site of which it forms a portion shall, from that date each be a separate relevant site for the purposes of this Part.”, | ||
(e) in section 653T(2)(e), by the substitution of “including of any claims made in accordance with section 653IA, 653AD, 653AE, 653AF, 653AFA, 653AFB, 653AGA, 653AH, 653AHA or 653AI” for “including of any claims made in accordance with section 653AD, 653AE, 653AF, 653AFA, 653AFB, 653AH, 653AHA or 653AI”, | ||
(f) in section 653AD, by the insertion of the following subsections after subsection (6): | ||
“(6A) This subsection applies where— | ||
(a) this section and section 653AGA apply in respect of a site, and | ||
(b) the date specified in the notification under subsection (2) is before the date of the grant of planning permission or, where section 653AGA(2) applies, the date on which the relevant appeal or relevant petition, as the case may be, in respect of the planning permission is determined. | ||
(6B) Where subsection (6A) applies, on the making of a claim by the liable person, residential zoned land tax deferred in accordance with section 653AGA in respect of a site shall not be due and payable in respect of the site, or part of the site, affected in the manner described in subsection (1). | ||
(6C) Where only part of the site is affected in the manner described in subsection (1), the amount of residential zoned land tax deferred in accordance with section 653AGA that is not due and payable in accordance with subsection (6B), shall be determined by the formula in subsection (6), subject to the following modifications: | ||
C shall be the amount of deferred tax which is not due and payable, | ||
T shall be the total amount of deferred residential zoned land tax in respect of the site, | ||
Apart shall be the area, in square metres, of the part of the site affected in the manner described in subsection (1), and | ||
Atotal shall be the total area, in square metres, of the site.”, | ||
(g) in section 653AF— | ||
(i) by the substitution of the following subsection for subsection (1): | ||
“(1) In this section and section 653AGA— | ||
‘relevant appeal’ means an appeal to An Bord Pleanála in respect of a grant of planning permission, where the appeal has not been made by— | ||
(a) the applicant or the owner of the land on which the development to which the planning permission relates is to be carried out, or | ||
(b) a person connected (within the meaning of section 10) with the applicant or the owner; | ||
‘relevant petition’ means— | ||
(a) an application for judicial review of a decision of a local authority or An Bord Pleanála in respect of a grant of planning permission, or | ||
(b) an appeal of a determination of a judicial review referred to in paragraph (a), | ||
where the appeal or application, as the case may be, has not been made by— | ||
(i) the applicant or the owner of the land on which the development to which the grant of planning permission relates is to be carried out, or | ||
(ii) a person connected (within the meaning of section 10) with the applicant or the owner.”, | ||
(ii) in subsection (2), by the substitution of “a relevant appeal, or a relevant petition, as the case may be,” for “a relevant appeal”, | ||
(iii) in subsection (3)— | ||
(I) by the substitution of “Where this section applies in respect of a relevant appeal and the relevant appeal is subsequently determined” for “Where this section applies and the relevant appeal concerned is subsequently determined”, and | ||
(II) by the substitution of “the planning permission referred to in subsection (2) was granted” for “the relevant appeal was first made”, | ||
(iv) in subsection (4), by the substitution of “the planning permission referred to in subsection (2) was granted” for “the relevant appeal was made”, and | ||
(v) by the insertion of the following subsection after subsection (4): | ||
“(5) Where this section applies in respect of a relevant petition, on the making of a claim by a liable person, any residential zoned land tax that arises in respect of a liability date between— | ||
(a) the date on which the planning permission referred to in subsection (2) is granted, and | ||
(b) the date on which the relevant petition is determined, | ||
shall not be due and payable.”, | ||
(h) by the insertion of the following section after section 653AG: | ||
“Deferral of residential zoned land tax in respect of grant of planning permission | ||
653AGA. (1) This section applies where— | ||
(a) a planning permission has been granted in respect of a relevant site, | ||
(b) that planning permission, subject to subsection (2), is not the subject of a relevant appeal or relevant petition, and | ||
(c) no commencement notice in respect of the development of the relevant site has been lodged with the local authority in whose functional area the relevant site is situated. | ||
(2) Where a relevant appeal or relevant petition is made in respect of a grant of planning permission and the relevant appeal or relevant petition is determined such that the grant of planning permission is upheld, a reference in this section to the date of grant of planning permission shall be read as a reference to the date on which that relevant appeal or relevant petition, as the case may be, is determined. | ||
(3) Subject to subsections (4), (5) and (6), where this section applies, so much of any residential zoned land tax arising in respect of a liability date, in relation to a relevant site, after the date of grant of planning permission in respect of the relevant site shall, notwithstanding section 653Q(2), not be due and payable until the earlier to occur of— | ||
(a) the expiration of the period of 12 months from the date of grant of planning permission, and | ||
(b) the date on which there is a change in the ownership of the relevant site, or part thereof, | ||
and residential zoned land tax so deferred shall be referred to in this section as ‘pre-development deferred residential zoned land tax’. | ||
(4) (a) In this subsection— | ||
‘group’ has the same meaning as it has in section 616; | ||
‘member of a group’ has the same meaning as it has in section 616. | ||
(b) This subsection applies where— | ||
(i) a member of a group of companies (in this subsection referred to as the ‘transferor company’) transfers a relevant site or part of a relevant site, as the case may be, in respect of which this section applies to another member of the group (in this subsection referred to as the ‘transferee company’), and | ||
(ii) the transferor company and the transferee company are within the charge to corporation tax. | ||
(c) Where this subsection applies, for the purpose of this section— | ||
(i) the relevant site or part of the relevant site, as the case may be, that is transferred is deemed to have been acquired by the transferee company at the time it was acquired by the transferor company, | ||
(ii) the transferee company shall, from the date of the transfer, be deemed to be the liable person in respect of any pre development deferred residential zoned land tax relating to the relevant site or part of the relevant site, as the case may be, in respect of a liability date prior to the transfer referred to in paragraph (b), and | ||
(iii) the transfer of the relevant site or part of the relevant site, as the case may be, to the transferee company shall not give rise to a change of ownership of the relevant site or part of the relevant site for the purposes of subsection (3)(b). | ||
(d) Where pre-development deferred residential zoned land tax becomes due and payable in accordance with subsection (3) or (6) in relation to the relevant site, or the part of the relevant site, as the case may be, which was transferred, the transferor company and transferee company shall be jointly and severally liable for such tax. | ||
(5) (a) This subsection applies where a commencement notice in respect of development of a relevant site in respect of which this section applies has been lodged with the local authority in whose functional area the relevant site is situated, before the expiration of the period referred to in subsection (3)(a), such that— | ||
(i) section 653AG applies and the site ceases to be treated as a relevant site pursuant to that section, or | ||
(ii) 653AH applies, | ||
as appropriate. | ||
(b) Where this subsection applies, for each liability date falling within the period from the date of grant of planning permission to the date the commencement notice concerned is lodged— | ||
(i) the relevant amount referred to in paragraph (c) or (d), as the case may be, shall be treated as ‘deferred residential zoned land tax’ within the meaning of section 653AH for the purposes of that section, and | ||
(ii) the relevant amount referred to in paragraph (e) shall no longer be due and payable. | ||
(c) Where the development consists of residential development only, the relevant amount is the amount of pre-development deferred residential zoned land tax. | ||
(d) Where the development consists of residential development and development other than residential development, the relevant amount is the amount represented by W in the formula: | ||
W = (A × (B/C)) × D | ||
where— | ||
A is the market value of the relevant site on the valuation date applicable to each liability date, | ||
B is, in accordance with the planning permission concerned, the portion of the gross floor space for all of the development, to which the planning permission relates, which comprises dwellings, | ||
C is the total gross floor space for all of the development to which the planning permission relates, and | ||
D is the rate of 3 per cent. | ||
(e) Where the development consists of development other than residential development, in whole or in part, the relevant amount is the amount represented by Y in the formula— | ||
Y = (Z - (A × (B/C))) × D | ||
where— | ||
Z is the market value of the relevant site on the valuation date applicable to each liability date, | ||
A is the market value of the relevant site on the valuation date applicable to each liability date, | ||
B is, in accordance with the planning permission concerned, the portion, if any, of the gross floor space for all of the development, to which the planning permission relates, which comprises dwellings, | ||
C is the total gross floor space for all of the development to which the planning permission relates, and | ||
D is the rate of 3 per cent. | ||
(6) (a) Where— | ||
(i) there is a change of ownership of part of a relevant site to which this section applies, | ||
(ii) that change of ownership does not result in the entire relevant site having changed ownership, and | ||
(iii) that change of ownership is the earlier to occur of the events referred to in paragraphs (a) and (b) of subsection (3), | ||
(referred to in this subsection as a ‘part ownership change’) the amount of any pre-development deferred residential zoned land tax in respect of that part of the relevant site so transferred which— | ||
(I) arises in respect of a liability date that falls in the period from the date of grant of planning permission to the date of the part ownership change, and | ||
(II) becomes due and payable in accordance with subsection (3) on the date of the part ownership change (referred to in this subsection as the ‘part ownership change liability’), | ||
shall be the amount represented by A in the formula— | ||
A = (B – C) × D/E | ||
where— | ||
B is the pre-development deferred residential zoned land tax in respect of the relevant site (as that relevant site was comprised prior to any change of ownership), | ||
C is the sum of part ownership change liabilities arising in respect of the relevant site prior to the change of ownership referred to in subparagraph (i), | ||
D is the area, in square metres, of the part of the relevant site which is transferred pursuant to the part ownership change, and | ||
E is the total area, in square metres, of the relevant site as it was comprised immediately prior to the change of ownership referred to in subparagraph (i). | ||
(b) Following a part ownership change, subsection (3) shall continue to apply as if the part ownership change did not occur. | ||
(7) Where pre-development deferred residential zoned land tax becomes due and payable in accordance with subsection (3) or (6), the liable person shall amend each return in respect of each liability date concerned and pay any tax and interest due accordingly. | ||
(8) This section only applies if a return referred to in section 653T is delivered to the Revenue Commissioners in respect of each liability date to which this section refers, notwithstanding subsection (3). | ||
(9) Where this section has been applied in respect of a planning permission pertaining to land representing a relevant site, it shall not apply in respect of any other planning permission pertaining to that land or any portion of that land.”, | ||
(i) in section 653AH— | ||
(i) in subsection (3)— | ||
(I) by the substitution of “subsections (4A), (5), (5A) and (7)” for “subsections (5) and (7)”, | ||
(II) by the substitution of “any residential zoned land tax, less any such tax paid pursuant to subsection (5A), arising in respect of” for “any residential zoned land tax arising in respect of”, and | ||
(III) by the substitution of the following paragraph for paragraph (b)— | ||
“(b) the date on which there is a change in the ownership of all or part of the relevant site— | ||
(i) in the case of a change of ownership of all of the relevant site, where such a change occurs prior to certificates of compliance on completion having been lodged with the local authority concerned in respect of all of the relevant residential development, or | ||
(ii) in the case of a change of ownership of part of the relevant site, where such a change occurs prior to certificates of compliance on completion having been lodged with the local authority concerned in respect of the part of the relevant residential development on that part of the relevant site,”, | ||
(ii) by the insertion of the following subsection after subsection (4): | ||
“(4A) (a) In this subsection— | ||
‘group’ has the same meaning as it has in section 616; | ||
‘member of a group’ has the same meaning as it has in section 616. | ||
(b) This subsection applies where— | ||
(i) a member of a group of companies (in this subsection referred to as the ‘transferor company’) transfers a relevant site or a part of a relevant site, as the case may be, in respect of which this section applies to another member of the group (in this subsection referred to as the ‘transferee company’), and | ||
(ii) the transferor company and the transferee company are within the charge to corporation tax. | ||
(c) Where this subsection applies, for the purpose of this section— | ||
(i) the relevant site or part of the relevant site, as the case may be, that is transferred is deemed to have been acquired by the transferee company at the time it was acquired by the transferor company, | ||
(ii) the transferee company shall, from the date of the transfer, be deemed to be the liable person in respect of any deferred residential zoned land tax relating to the relevant site or part of the relevant site, as the case may be, in respect of a liability date prior to the transfer referred to in paragraph (b), and | ||
(iii) the transfer of the relevant site or part of the relevant site, as the case may be, to the transferee company shall not give rise to a change of ownership of the relevant site or part of the relevant site for the purposes of subsection (3)(b). | ||
(d) Where deferred residential zoned land tax becomes due and payable in accordance with subsection (3), (5A) or (7)(b) in relation to the relevant site, or the part of the relevant site, as the case may be, which is transferred, the transferor company and transferee company shall be jointly and severally liable for such tax.”, | ||
(iii) by the insertion of the following subsection after subsection (5): | ||
“(5A) (a) Where— | ||
(i) there is a change of ownership of part of a relevant site to which this section applies, | ||
(ii) that change of ownership does not result in the entire relevant site having changed ownership, and | ||
(iii) that change of ownership is the earliest to occur of the events referred to in paragraphs (a), (b) and (c) of subsection (3), | ||
(referred to in this subsection as a ‘part ownership change’) the amount of any deferred residential zoned land tax in respect of that part of the relevant site so transferred which— | ||
(I) arises in respect of a liability date that falls in the period from the date of the lodgement of the commencement notice to the date of the part ownership change, and | ||
(II) becomes due and payable in accordance with subsection (3) on the date of the part ownership change (referred to in this subsection as the ‘part ownership change liability’), | ||
shall be the amount represented by ‘A’ in the formula— | ||
A = (B – C) × D/E | ||
where— | ||
B is the deferred residential zoned land tax in respect of the relevant site (as that relevant site was comprised prior to any change of ownership), | ||
C is the sum of part ownership change liabilities arising in respect of the relevant site prior to the change of ownership referred to in subparagraph (i), | ||
D is the area, in square metres, of the part of the relevant site which is transferred pursuant to the part ownership change, and | ||
E is the total area, in square metres, of the relevant site as it was comprised immediately prior to the change of ownership referred to in subparagraph (i). | ||
(b) Following a part ownership change, subsection (3) shall continue to apply as if the part ownership change did not occur.”, | ||
(iv) in subsection (7A), by the substitution of “subsection (3), (5A) or (7)(b)” for “subsection (3) or (7)(b)”, | ||
(v) by the substitution of the following subsection for subsection (8): | ||
“(8) For the purposes of subsection (7)(b) and column (1) of the Table to this section, the percentage of completion of relevant residential development on a relevant site at the expiry of a planning permission period shall be the amount, expressed as a percentage, represented by A in the formula— | ||
A = (B / C) × 100 | ||
where— | ||
B is the total gross floor space of the relevant residential development on the relevant site which is completed at the expiry of the planning permission period, less the total such gross floor space, if any, of the part of the relevant residential development on a part of the relevant site in respect of which there has been a part ownership change (within the meaning of subsection (5A)), and | ||
C is, in accordance with the planning permission, the total gross floor space of the relevant residential development on the relevant site, less the total such gross floor space, if any, of the part of the relevant residential development on a part of the relevant site in respect of which there has been a part ownership change (within the meaning of subsection (5A)).”, | ||
(vi) by the insertion of the following subsection after subsection (8): | ||
“(8A) For the purposes of the formula in subsection (8), a reference in that subsection to a relevant site is a reference to the relevant site as it was comprised prior to the lodgement of any certificate of compliance on completion in respect of residential development on the relevant site and the consequent application of section 653O(5).”, | ||
and | ||
(vii) in subsection (10), by the substitution of “subsection (3)” for “subsection (2)”, | ||
and | ||
(j) in section 653AI— | ||
(i) in subsection (10)— | ||
(I) in paragraph (a), by the substitution of “make,” for “make, or”, | ||
(II) in paragraph (b), by the substitution of “section 653Q(4), and” for “section 653Q(4).”, and | ||
(III) by the insertion of the following paragraph after paragraph (b): | ||
“(c) the personal representative may, during the administration period, make a claim under section 653AF(5) that the deceased person would have been entitled to make.”, | ||
(ii) by the insertion of the following subsection after subsection (10B): | ||
“(10C) If on the date of death of a deceased person, section 653AGA applies with respect to a relevant site to which the deceased person was the liable person prior to their death— | ||
(a) that section shall apply to the personal representatives as if they were the liable person of the relevant site at the date of death of the deceased person, and | ||
(b) at the completion of the administration period any residential zoned land tax deferred at that time under section 653AGA(3) shall become a charge on the land concerned under section 653Q(4).”, | ||
(iii) in subsection (11), by the substitution of the following paragraph for paragraph (b): | ||
“(b) at the completion of the administration period any residential zoned land tax deferred at that time under section 653AH(3), or treated, pursuant to section 653AGA(5)(b)(i), as ‘deferred residential zoned land tax’ within the meaning of section 653AH for the purposes of that section, shall become a charge on the land concerned under section 653Q(4).”, | ||
(iv) by the substitution of the following subsection for subsection (12): | ||
“(12) Notwithstanding subsection (9)(b), (10)(b), (10)(c), (10A)(b), (10B), (10C)(a) or (11)(a), sections 653AE(4), 653AF(4) and (5), 653AFA(4), 653AFB(6) and (7), 653AGA(3), 653AGA(5)(b)(i) and 653AH(3) shall continue to apply to a beneficiary or beneficiaries, as the case may be, of a site to which section 653AE(4), or a relevant site to which section 653AF(4) or (5), 653AFA(4), 653AFB(6) or (7), 653AGA(3), 653AGA(5)(b)(i) or 653AH(3), was applicable at the end of the administration period, as if the beneficiary or beneficiaries were the liable person of that relevant site at the date of death of the deceased person.”, | ||
(v) by the substitution of the following subsection for subsection (13): | ||
“(13) Any charge on the land arising under subsections (9)(b), (10)(b), (10A)(b), (10B), (10C)(b) or (11)(b) shall cease to apply where the residential zoned land tax to which the charge relates would not be payable by a beneficiary or beneficiaries, as the case may be, of the relevant site to which the charge relates, under section 653AE(5), 653AF(4)(a), 653AFA(5), 653AFB(9), 653AFB(13), 653AGA(5)(b)(ii) or 653AH(7), as the case may be, had they been the liable person with respect to that relevant site at the date of death of the deceased person.”, and | ||
(vi) by the insertion of the following section after section 653AM: | ||
“Functions conferred on Limerick City and County Council | ||
653AMA. A function conferred by this Part on a local authority shall, in the case of Limerick City and County Council, be performed for it or on its behalf and in its name— | ||
(a) in the case of the functions conferred by paragraphs (a), (b) and (c) of section 653I(4), by the Mayor of Limerick, and | ||
(b) in all other cases, by the director general of Limerick City and County Council.”. |