Finance Act 2022
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Residential zoned land tax | ||
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98. (1) Section 653B of the Principal Act is amended, in paragraph (i), by the substitution of “provide” for “provides”. | ||
(2) Section 653I of the Principal Act is amended by the insertion of the following subsection after subsection (4): | ||
“(5) Where a submission under subsection (1) is made by the owner of such lands, that person shall have available such evidence as is necessary to prove their ownership of the lands and the local authority may request that such evidence is provided to the local authority.”. | ||
(3) Section 653K of the Principal Act is amended by the insertion of the following paragraph after paragraph (d): | ||
“(e) reflecting the determination of applications, if any, made— | ||
(i) to retain unauthorised development, pursuant to section 34(12C) of the Act of 2000, or | ||
(ii) for substitute consent, in accordance with section 177E of the Act of 2000,”. | ||
(4) Section 653S of the Principal Act is amended by the insertion of the following subsection after subsection (4): | ||
“(5) A person who fails to comply with subsection (1) is liable to a penalty of €3,000.”. | ||
(5) Section 653T of the Principal Act is amended, in subsection (2), by the substitution of the following paragraph for paragraph (e): | ||
“(e) details of any exemption from, abatement or deferral of, or repayment of residential zoned land tax, including of any claims made in accordance with section 653AD, 653AE, 653AF, 653AFA, 653AFB, 653AH, 653AHA or 653AI.”. | ||
(6) Section 653X of the Principal Act is amended, in subsection (1)— | ||
(a) in paragraph (e), by the substitution of “is delivered’;” for “is delivered’.”, and | ||
(b) by the insertion of the following paragraph after paragraph (e): | ||
“(f) for the purposes of section 653AHA, in section 959AA(1)(ii), ‘after the end of 4 years commencing at the end of the year in which the relevant contract (within the meaning of section 653AHA) expires’ shall be substituted for ‘after the end of a period of 4 years commencing at the end of the chargeable period for which the return is delivered’.”. | ||
(7) Section 653AC of the Principal Act is amended by the insertion of the following subsections after subsection (2): | ||
“(3) Where, in relation to a relevant site, a person deliberately or carelessly delivers an incorrect return, as set out in section 1077F(2), on or before the return date, the person shall be deemed to have failed to deliver that return on or before that date unless the error in the return is remedied on or before that date. | ||
(4) Subsection (3) shall not apply where, in relation to a relevant site, a person deliberately or carelessly delivers an incorrect return as set out in section 1077F(2), on or before the return date and pays the full amount of any penalty calculated in accordance with section 1077F(3) to which the person is liable. | ||
(5) Where a person delivers an incorrect return in respect of a relevant site on or before the return date but does so neither deliberately nor carelessly and it comes to the person’s notice (or, if he or she has died, to the notice of his or her personal representatives) that it is incorrect, the person shall be deemed to have failed to deliver the return on or before the return date unless the error in the return of income is remedied without unreasonable delay.”. | ||
(8) The Principal Act is amended by the insertion of the following sections after section 653AF: | ||
“Deferral of tax during application to retain unauthorised development or for substitute consent | ||
653AFA. (1) This section applies where a person makes— | ||
(a) an application pursuant to section 34(12C) of the Act of 2000, or | ||
(b) an application in accordance with section 177E of the Act of 2000, | ||
in respect of land which would not satisfy the relevant criteria at the time of the making of that application, by virtue of its exclusion under section 653B(i) or (ii), but for its status as unauthorised development (within the meaning of the Act of 2000). | ||
(2) Where this section applies and— | ||
(a) the application referred to in paragraph (a) of subsection (1) is subsequently determined by the local authority concerned such that permission to retain the unauthorised development is granted, or | ||
(b) the application referred to in paragraph (b) of subsection (1) is subsequently determined by An Bord Pleanála such that substitute consent is granted, | ||
the land shall be treated for the purposes of this Part as not being a relevant site from the date of the making of the application referred to in paragraph (a) or (b), as the case may be, of subsection (1). | ||
(3) Where a site ceases to be a relevant site in accordance with subsection (2), the liable person in relation to the site may make a claim for the repayment of all residential zoned land tax paid by that liable person in respect of the site that arose from the date of the making of the application referred to in subsection (1). | ||
(4) At a return date after the date on which the application referred to in paragraph (a) or (b), as the case may be, of subsection (1) was made, but before the application has been determined, a liable person may make a claim to defer payment of the residential zoned land tax in respect of the land, until such time as the application is determined. | ||
(5) Where— | ||
(a) an application referred to in paragraph (a) or (b), as the case may be, of subsection (1) was made, | ||
(b) a claim is made under subsection (4), and | ||
(c) as the case may be— | ||
(i) the application referred to in paragraph (a) of subsection (1) is determined by the local authority concerned such that permission to retain the unauthorised development is granted, or | ||
(ii) the application referred to in paragraph (b) of subsection (1) is determined by An Bord Pleanála such that substitute consent is granted, | ||
the tax deferred on foot of the claim under subsection (4) shall not be due and payable. | ||
(6) Where— | ||
(a) an application referred to in paragraph (a) or (b), as the case may be, of subsection (1) was made, | ||
(b) a claim is made under subsection (4), and | ||
(c) as the case may be— | ||
(i) the application referred to in paragraph (a) of subsection (1) is determined by the local authority concerned such that permission to retain the unauthorised development is not granted, or | ||
(ii) the application referred to in paragraph (b) of subsection (1) is determined by An Bord Pleanála such that substitute consent is not granted, | ||
subject to section 653AFB(6), the liable person shall amend each return in which a claim to defer payment under subsection (4) was made, and pay any tax and interest due accordingly. | ||
(7) Where— | ||
(a) a claim for deferral is made under subsection (4), and | ||
(b) the owner sells the land concerned before the application concerned is determined, | ||
the liable person shall amend each return in which a claim to defer payment in accordance with subsection (4) was made, and pay any tax and interest due accordingly. | ||
Deferral of tax during appeals in respect of applications to retain unauthorised development or for substitute consent | ||
653AFB. (1) In this section— | ||
‘relevant appeal’ means, in respect of an application referred to in paragraph (a) of section 653AFA(1), an appeal to An Bord Pleanála of a decision of a local authority not to grant permission to retain the unauthorised development concerned, where the appeal has been made by the owner of the land to which the application referred to in paragraph (a) of section 653AFA(1) relates; | ||
‘relevant petition’ means— | ||
(a) in respect of an application referred to in paragraph (a) of section 653AFA(1)— | ||
(i) an application for judicial review of a decision of a local authority or An Bord Pleanála not to grant permission to retain the unauthorised development concerned, or | ||
(ii) an appeal of a determination of a judicial review referred to in subparagraph (i), | ||
or | ||
(b) in respect of an application referred to in paragraph (b) of section 653AFA(1)— | ||
(i) an application for judicial review of a decision of An Bord Pleanála not to grant substitute consent in respect of the development concerned, or | ||
(ii) an appeal of a determination of a judicial review referred to in subparagraph (i), | ||
where the appeal or application, as the case may be, has been made by the owner of the land to which the application referred to in paragraph (a) or (b), as the case may be, of section 653AFA(1) relates. | ||
(2) This section applies where a relevant appeal or a relevant petition is made, in relation to land which would not satisfy the relevant criteria, at the time of the making of an application referred to in paragraph (a) or (b) of section 653AFA(1), by virtue of its exclusion under section 653B(i) or (ii), but for its status as unauthorised development (within the meaning of the Act of 2000). | ||
(3) This subsection shall apply where this section applies and a relevant appeal is subsequently determined such that permission to retain the unauthorised development concerned is granted. | ||
(4) Where subsection (3) applies, the land to which the permission relates shall be treated for the purposes of this Part as not being a relevant site from the date of the making of the application on foot of which the permission was granted. | ||
(5) Where subsection (3) applies, the liable person in relation to the site to which the permission relates may make a claim for the repayment of all residential zoned land tax paid by that liable person in respect of the site that arose from the date of the making of the application on foot of which the permission was granted. | ||
(6) Where a claim to defer tax was made in accordance with section 653AFA(4) in relation to an application in respect of which a relevant appeal or a relevant petition was made, section 653AFA(6) shall not apply where the liable person concerned makes a claim to continue to defer payment of the tax so deferred until such time as the relevant appeal or relevant petition, as the case may be, is subsequently determined. | ||
(7) Subject to subsection (8), a liable person may make a claim to defer payment of the residential zoned land tax in respect of the site to which a relevant appeal or relevant petition, as the case may be, relates for the period from the date on which the relevant appeal or relevant petition, as the case may be, was made until the date on which the relevant appeal or relevant petition, as the case may be, is subsequently determined. | ||
(8) A claim under subsection (7) may be made at a return date after the date on which a relevant appeal or relevant petition, as the case may be, was made but before the relevant appeal or relevant petition, as the case may be, was subsequently determined. | ||
(9) Where this section applies and— | ||
(a) a claim is made under subsection (6) or (7), and | ||
(b) a relevant appeal is subsequently determined such that permission to retain the unauthorised development is granted, | ||
the tax deferred on foot of the claim under subsection (6) or (7), as the case may be, shall not be due and payable. | ||
(10) Where— | ||
(a) a claim is made under subsection (6) or (7), and | ||
(b) the relevant appeal is subsequently determined such that permission to retain the unauthorised development is not granted, | ||
the liable person shall amend each return in which a claim to defer payment under section 653AFA(4) or subsection (7), as the case may be, was made, and pay any tax and interest due accordingly. | ||
(11) Where a relevant petition is subsequently determined such that the applicant makes— | ||
(a) an application pursuant to section 34(12C) of the Act of 2000, or | ||
(b) an application in accordance with section 177E of the Act of 2000, | ||
in respect of the development concerned within 3 months of the date of the determination, section 653AFA shall apply, subject to subsections (12) and (13), to the application made under paragraph (a) or (b), as the case may be. | ||
(12) Where, as the case may be— | ||
(a) the application referred to in paragraph (a) of subsection (11) is determined by the local authority concerned such that permission to retain the unauthorised development is not granted, or | ||
(b) the application referred to in paragraph (b) of subsection (11) is determined by An Bord Pleanála such that substitute consent is not granted, | ||
the liable person shall amend each return in which a claim to defer payment under section 653AFA(4) or subsection (7) was made in respect of the application to which the relevant petition relates (in this subsection and subsection (13) referred to as the ‘original application’), from the date of the making of the original application to which the relevant petition relates, and pay any tax and interest due accordingly. | ||
(13) Where, as the case may be— | ||
(a) the application referred to in paragraph (a) of subsection (11) is determined by the local authority concerned such that permission to retain the unauthorised development is granted, or | ||
(b) the application referred to in paragraph (b) of subsection (11) is determined by An Bord Pleanála such that substitute consent is granted, | ||
then— | ||
(i) the land shall be treated for the purposes of this Part as not being a relevant site from the date of the making of the original application, | ||
(ii) the liable person in relation to the site to which the permission or substitute consent relates may make a claim for the repayment of all residential zoned land tax paid by that liable person in respect of the site that arose from the date of the making of the original application, and | ||
(iii) where a claim was made under subsection (6) or (7), the tax deferred on foot of the claim shall not be due and payable. | ||
(14) Where— | ||
(a) a claim is made under subsection (6) or (7) in respect of a relevant petition, and | ||
(b) that relevant petition is subsequently determined such that the application to which the relevant petition relates is remitted to the local authority or An Bord Pleanála, as the case may be, for determination, | ||
section 653AFA shall, subject to subsections (15) and (16), apply to that application. | ||
(15) Where, as the case may be— | ||
(a) the application referred to in subsection (14) is determined by the local authority concerned such that permission to retain the unauthorised development is not granted, or | ||
(b) the application referred to in subsection (14) is determined by An Bord Pleanála such that substitute consent is not granted, | ||
the liable person shall amend each return in which a claim to defer payment under section 653AFA(4) or subsection (7) was made in respect of the application to which the relevant petition relates, and pay any tax and interest due accordingly. | ||
(16) Where subsection (14) applies and a claim was made under subsection (6) or (7), the tax deferred on foot of the claim shall not be due and payable. | ||
(17) Where— | ||
(a) a claim is made under subsection (6) or (7) in respect of a relevant petition, | ||
(b) that relevant petition is subsequently determined, and | ||
(c) none of subsections (11) to (16) apply, | ||
the liable person shall amend each return in which a claim to defer payment under section 653AFA(4) or subsection (7), as the case may be, was made, and pay any tax and interest due accordingly. | ||
(18) Where— | ||
(a) a claim for deferral is made under subsection (6) or (7), and | ||
(b) the owner sells the land concerned before the relevant appeal concerned is determined, | ||
the liable person shall amend each return in which a claim to defer payment in accordance with section 653AFA(4) or subsection (7), as the case may be, was made, and pay any tax and interest due accordingly.”. | ||
(9) The Principal Act is amended by the insertion of the following section after section 653AH: | ||
“Sites subject to a relevant contract | ||
653AHA. (1) In this section— | ||
‘lease’ has the same meaning as it has in the Capital Gains Tax Acts; | ||
‘relevant contract’ means a lease, other than a lease or an agreement for lease referred to in section 653Z(1)(c), which— | ||
(a) is evidenced in writing, | ||
(b) was entered into prior to 1 January 2022, and | ||
(c) it is reasonable to consider precludes the owner of the relevant site from carrying out development on or to the site, or part thereof. | ||
(2) Subject to subsections (3) and (5), on the making of a claim by the liable person, so much of any residential zoned land tax arising in relation to a relevant site which is subject to a relevant contract (or where only part of the site is subject to a relevant contract, that part of the relevant site), shall, for the period of that relevant contract, notwithstanding section 653Q(2), not be due and payable. | ||
(3) Where a claim is made in accordance with subsection (2) in respect of part only of a relevant site, the amount of tax due and payable in respect of the relevant site during the period of the relevant contract shall be determined by the following formula: | ||
C = T x (Apart/Atotal) | ||
where— | ||
C is the amount of tax due and payable, | ||
T is the total amount of residential zoned land tax that would be due and payable in respect of the site but for this section, | ||
Apart is the area, in square metres, of the part of the site that is not subject to the relevant contract, and | ||
Atotal is the total area, in square metres, of the site. | ||
(4) A claim referred to in subsection (2) shall be made in such form and contain such particulars as the Revenue Commissioners may prescribe. | ||
(5) This section only applies if a return referred to in section 653T is delivered to the Revenue Commissioners in respect of each liability date occurring during the term of the relevant contract. | ||
(6) This section shall not apply where the parties to the relevant contract include the owner of the relevant site and a person connected (within the meaning of section 10) with the owner. | ||
(7) This section shall not apply to a relevant site subject to a relevant contract, where it would be reasonable to consider that the relevant contract is not entered into for bona fide commercial reasons and forms part of any arrangement or scheme the main purpose or one of the main purposes of which is the avoidance of a liability to tax. | ||
(8) For the purposes of subsections (2) and (3), where a relevant contract precludes the owner of a relevant site from carrying out development on or to the site, or part thereof, for part only of the term of the contract, the period of that relevant contract shall be deemed to be the period during which such development is precluded under the contract.”. | ||
(10) Section 653AH of the Principal Act is amended by the insertion of the following subsection after subsection (7): | ||
“(7A) Where deferred residential zoned land tax becomes due and payable in accordance with subsection (7)(b), the liable person shall amend each return in respect of each liability date to which this section refers and pay any tax and interest due accordingly.”. | ||
(11) Section 653AI of the Principal Act is amended— | ||
(a) by the insertion of the following subsections after subsection (10): | ||
“(10A) Where, on the date of death of a deceased person, section 653AFA applies to land in respect of which the deceased person was the owner immediately prior to their death— | ||
(a) the personal representatives may, during the administration period, make any claim for the repayment of residential zoned land tax under section 653AFA(3) that the deceased person would have been entitled to make, or | ||
(b) the personal representative may, during the administration period, make any claim to defer residential zoned land tax, under section 653AFA(4) that the deceased person would have been entitled to make and any tax so deferred by the personal representative that becomes due and payable under subsection (6) or (7) of section 653AFA prior to the end of the administration period shall become a charge on the land concerned under section 653Q(4). | ||
(10B) Where, on the date of death of a deceased person, section 653AFB applies to land in respect of which the deceased person was the owner immediately prior to their death, the personal representative may, during the administration period, make any claim to defer residential zoned land tax, under subsection (6) or (7) of 653AFB that the deceased person would have been entitled to make and any tax so deferred by the personal representative that becomes due and payable under subsection (10), (12), (15), (17) or (18) of section 653AFB prior to the end of the administration period shall become a charge on the land concerned under section 653Q(4).”, | ||
and | ||
(b) by the insertion of the following subsection after subsection (11): | ||
“(11A) Where, on the date of death of a deceased person, section 653AHA applies to a relevant site in respect of which the deceased person was the liable person immediately prior to their death, the personal representative may, during the administration period, make any claim under section 653AHA(2) that the deceased person would have been entitled to make.”. | ||
(12) The Principal Act is amended by the substitution of the following section for section 653AK: | ||
“Restriction of deduction | ||
653AK. (1) Notwithstanding anything in the Tax Acts or Capital Gains Tax Acts, in computing the amount of profits or gains to be charged to income tax, corporation tax or capital gains tax, no sum shall be deducted in respect of any amount of residential zoned land tax. | ||
(2) Notwithstanding anything in the Tax Acts or Capital Gains Tax Acts, in computing amounts to be charged in accordance with Part 18D, no sum shall be deducted in respect of any amount of residential zoned land tax, nor shall any sum be deducted from the amount of domicile levy chargeable under Part 18C.”. | ||
(13) Section 917D of the Principal Act is amended, in subsection (1), by the substitution of the following definition for the definition of “the Acts”: | ||
“‘the Acts’ means— | ||
(a) the statutes relating to the duties of excise and to the management of those duties, | ||
(aa) the Customs Acts, | ||
(b) the Tax Acts, | ||
(c) the Capital Gains Tax Acts, | ||
(d) the Value-Added Tax Consolidation Act 2010 , and the enactments amending or extending that Act, | ||
(e) the Capital Acquisitions Tax Consolidation Act 2003 , and the enactments amending or extending that Act, | ||
(f) the Stamp Duties Consolidation Act 1999 , and the enactments amending or extending that Act, and | ||
(g) Part 22A, | ||
and any instruments made under any of the statutes and enactments referred to in paragraphs (a) to (g);”. |