Owners of land, which is zoned for residential development and serviced, may be liable for Residential Zoned Land Tax (RZLT) from 1 February 2024.
Owners of land liable to RZLT should be aware of some important upcoming dates relevant to this new tax.
What is RZLT?
RZLT is an annual tax calculated at 3% of the market value of serviced land that is zoned for residential use on or after 1 January 2022. It was introduced by the Finance Act 2021.
Owners are liable for this tax and an “owner” is broadly defined in the legislation. It could include developers with an interest in or the right to develop the land.
Land is generally regarded as being serviced if it has access to sufficient infrastructure to facilitate residential development. This includes roads, paths, lighting, access to a water supply, sewers and drainage.
Each local authority prepared and published a draft map to identify land in their functional area deemed to be in scope on 1 November 2022.
When will RZLT be payable?
The first due date is 1 February 2024. Owners of land in scope on that date must file and pay the RZLT by 23 May 2024.
What is excluded from RZLT?
There are a limited number of exclusions, which include:
- Existing residential properties on land not exceeding one acre that are liable for Local Property Tax (LPT).
- Where the plot size for an existing residential properties exceeds one acre, the owner is not liable for RZLT, but must register for RZLT.
- Sites subject to the Derelict Sites Levy.
- Land with a mixed-use zoning to include residential, which is used for the operation of the business carried out on or beside it.
