Vacant Homes Tax 2023

20 September 2023

The Vacant Homes Tax (VHT) is a new annual tax introduced in 2023 with a view to increasing the supply of homes for rent or purchase.

For 2023 the tax applies where a residential property was in use as a dwelling for less than 30 days in the 12-month chargeable period to 31 October 2023.

Pay and file dates

The first chargeable period for VHT is 1 November 2022 to 31 October 2023 and the return filing date for properties within the scope of VHT during this period is 7 November 2023. The payment date for the VHT liability is 1 January 2024 unless the property owner chooses to pay by direct debit or annual debit.

Rate of tax

The rate of VHT on a property is three 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.

Exemptions

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 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.

An exemption must be claimed on a VHT return.

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