As part of Budget 2024 the Minister for Finance announced a number of changes to the application of the Residential Zoned Land Tax (RZLT). On 19 October, the Finance (No.2) Bill 2023 (the Bill) was published which proposes two important changes to RZLT.

Liability date delayed

The Bill provides that the first liability date for RZLT will be delayed by one year, from 1 February 2024 to 1 February 2025. This means that applicable lands will now be valued for the purpose of RZLT on 1 February 2025 and no payment will be due to Revenue until after that date. Liability remains set at 3% of the market value of the land on that date.

Phased developments excluded

The Bill now excludes from the charge to RZLT residential land which is subject to phased development under a development plan or local area plan. This means that land zoned for residential or mixed residential use and subject to phased development requirements under a development plan or local area plan will not now be subjected to the RZLT, provided such restrictions were in force at the time the planning authority decided to include the lands in its RZLT Final Map.

If the Bill is passed as currently drafted, these proposed changes will benefit developers who may have faced a tax liability despite the inability to develop land due to restrictions imposed by a development plan or local area plan. The Bill is currently at the Third Stage before the Dáil and the Government has confirmed it aims to enact the Bill in December.

For more information please contact Alison Fanagan, Consultant and Joint Head of A&L Goodbody’s Environmental & Planning Group, Alanna Byrne, Solicitor, or any member of our Environmental & Planning Group.