Navigating Residential Zoned Land Tax Liability
Are you ready for the May 2025 deadline?
The well documented implementation of the Residential Zoned Land Tax (RZLT) has posed numerous questions regarding the steps to be considered by the owners of land falling within the scope of the tax. Non-developer owners of land which is subject to RZLT, such as private individuals, religious institutions, farmers etc, may wish to apply to have their land rezoned by their Local Authority prior to 23rd May 2025. Subject to satisfying certain criteria such a landowner can claim an exemption from RZLT for 2025 from Revenue. A decision to seek a rezoning can have significant impacts on the future value prospects for such properties particularly in the context of amendments to planning legislation brought about by the Planning and Development Act 2024. Under the 2024 Act the lifetime of Development Plans will be extended to a 10 year lifespan, representing a significant extension from the 6 year lifespan heretofore.
Therefore, landowners who seek to rezone their land to bring it outside the scope of RZLT will face an extended Development Plan cycle should they wish to revert to a residential zoning at some stage into the future. Consequently, the implications of RZLT requires careful and strategic consideration so as to maintain and maximise an asset’s long-term value.
Contact Niall Brereton, Sam Harney and Paul Doyle to discuss appropriate strategies.
