Vacant Homes Tax

Vacant Homes Tax (VHT) was introduced in 2023. It is an annual tax that applies on 1 November 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 1 November 2023 to 31 October 2024.

Budget 2025: Increase in rate of Vacant Homes Tax

Budget 2025 announced that for the 12 months starting on 1 November 2024, the rate of VHT will increase to 7 times the basic rate of Local Property 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

Connected person

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

Relative means a:

• Brother or sister
• Ancestor (someone you are descended from)
• Lineal descendant (someone descended from you)

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
• While advertised for sale or rent
• By court order
• Due to some types of work, repair or refurbishment

To claim an exemption, you must make a tax return for VHT.

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.

The 2024 rate of VHT on a property is 5 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 3 times the basic rate of Local Property Tax. This was for the chargeable period 1 November 2022 to 31 October 2023.

If your property is liable for VHT, you must make a VHT return by 7 November.

If a VHT return is late, there is a 5% surcharge. If the return is over 2 months late, there is a 10% surcharge.

You must make your VHT return online using Revenue’s VHT portal. You can access the VHT portal by logging into:

• myAccount
• Revenue Online Service (ROS)
• The Local Property Tax (LPT) portal

You will see the option to ‘Click here to start the 3-step process for filing your return’. The steps are:

1. Review the details of your property and confirm whether it was vacant, occupied or changed ownership
2. Confirm whether or not your property is exempt
3. Make a payment

When you make your VHT return, you can choose to pay VHT by:

• Single debit card or credit card payment by 1 January 2025
• Single annual debit instruction on 21 March 2025
• Monthly direct debit payments during 2025

You must pay, or set up a debit arrangement to pay, by 1 January.