The Vacant Homes Tax (VHT) is a new annual tax, which applies where a residential property was in use as a dwelling for less than 30 days in the 12-months prior to 31 October 2023.
The first chargeable period for VHT is 1 November 2022 to 31 October 2023 and the latest return filing date is 7 November 2023, and the latest payment date for the VHT liability is 1 January 2024. The property owner may choose also to pay by direct debit or annual debit.
The rate of VHT on a property is three times the basic rate of Local Property Tax for the property and depends on the value of the property.
Budget 2024 outlined that the rate of VHT on a property from the 1st November 2023 will be increase to five times the basic rate of Local Property Tax for the property
VHT does not apply 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.
An exemption may be claimed on a VHT return if the property is unoccupied:
- Due to the owner’s illness or death
- While advertised for sale or rent
- By Court Order
- Due to structural works.