Practitioners are reminded that the Residential Zoned Land Tax (RZLT) was introduced in the Finance Act 2021. This is a new tax aimed at increasing housing supply by activating zoned, serviced residential development lands for housing and applies at a rate of 3% of the land’s market value.

The conveyancing committee is presently drafting an Explanatory Memorandum and new Requisition to deal with this tax but in the meantime practitioners are reminded that:

• each local authority has published a draft residential zoned land tax map on its website showing the lands that shall be subject to RZLT. Supplemental maps are to be prepared by 1 May 2023 and final maps by 1 December 2023. The final maps are to be revised annually from 2025 onwards;

• the liability date for RZLT is 1 February annually commencing in 2024 and the owner of a relevant site on the liability date must pay the tax on or before the return date for the relevant year which is 23 May in that year; and

• particular care should be taken if acting for vendors or purchasers of land which is zoned as being suitable for residential development and is serviced. In appropriate circumstances practitioners should advise their client to check whether or not the said lands are contained in the draft, supplemental or final residential zoned land tax map and be in a position to advise their client accordingly.

It is hoped that the Explanatory Memorandum and new Requisition will be issued to the profession in the coming weeks.