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Vacant Homes Tax (VHT) exemptions

  1. Overview
  2. Properties where the owner has died
  3. Properties where a Grant of Representation was issued
  4. Properties actively marketed for sale or rent
  5. Properties subject to certain Court Orders
  6. Properties that underwent structural works
  7. Property unoccupied due to illness of owner

Properties that underwent structural works

An exemption from Vacant Homes Tax (VHT) is available for properties that, in the chargeable period, underwent:

  • structural works
  • substantial repairs
  • or
  • substantial refurbishment.

This exemption applies only if:

  • the works were carried out for 6 months or more in the chargeable period
  • the works were carried out without any undue delay
  • and
  • one of the below conditions is satisfied.

Condition 1

Condition 1 requires that:

  • a registered professional or chartered engineer certifies that occupation of the property would have posed a threat to the health and safety of the occupants
  • and
  • if planning permission was required, it must have been obtained before the commencement of the works.

Condition 2

Condition 2 requires that the work costs exceeded 20 percent of the property’s market value before the works commenced.

Note

A registered professional means a person who is registered as an architect, quantity surveyor or building surveyor under the Building Control Act 2007. A chartered engineer must be included on the register maintained by Engineers Ireland. 

You must claim an exemption in your VHT Return for each applicable chargeable period.

  • Example 1

    Mary carried out some works to her vacant holiday home in Kerry. She serviced the boiler, replaced a window, painted the ground floor and purchased new furniture. These works are not considered to be structural works, substantial repairs, or substantial refurbishment. Therefore, Mary is not entitled to the benefit of the VHT exemption.

  • Example 2

    Tom usually rents his house to students for the academic year. The students vacated the property in late November as Tom planned to substantially refurbish the house. He reduced the number of bedrooms to create a master bedroom with a walk-in wardrobe and en suite. He converted the separate kitchen and dining room to an open plan living area. Tom also converted the attic to a home office. This required the installation of roof windows and a staircase. The walls were slabbed, and the attic was wired and plumbed. These works are substantial repairs or substantial refurbishment so Tom may be able to claim an exemption from VHT.

  • Example 3

    Amy commenced work on a project to double the size of her house by erecting an extension to her property. The extension was built, roofed and airtight within three months. At this point, Amy was offered the opportunity to work abroad for 12 months. She took this opportunity and put her building project on hold, with the house remaining vacant. Amy returned after 12 months and immediately resumed the works. Four months later the extension was completed in full. Although 19 months passed from the time works commenced until they finished, Amy is not entitled to the VHT exemption. This is because the works were not ongoing during any one chargeable period for a period of six months.

Next: Property unoccupied due to illness of owner

Published: 17 January 2024 Print this page

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