Revenue has extended the deadline for Residential Zoned Land Tax (RZLT) returns to May 30, 2025. RZLT is an annual self-assessed tax that applies to land zoned for residential use and serviced, aiming to incentivise landowners to activate existing planning permissions for housing. The wording of the legislation unfortunately goes much further than the stated purpose and impacts many landowners who are attempting to navigate the planning and infrastructural challenges in the sector at present. Indeed, many landowners have recently been surprised to learn that the tax applies to them where infrastructure connections are unavailable and planning permissions have been delayed. Indeed, recent interactions with Revenue indicate many structural flaws with this legislation that will require legislative input to put right if the original objective is to be achieved in a fair and balanced basis. This does not help those with liabilities by reference to 1 February 2025, who are trying to grasp the effect of the obligations.
The tax rate is 3% of the market value of the relevant site and applies from 2025 onwards. With approximately €12 million in liabilities already paid, this extension provides additional time for those who have started the registration process but haven't completed it yet. Filing the RZLT return is crucial to avoid substantial surcharges ranging from 10% to 30% for non-compliance.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
