Taxes Consolidation Act 1997 section 653AD

Repayment of tax on site not suitable for development

Section 653AD provides for the repayment of residential zoned land tax (RZLT) where a site, or part of a site, is determined to be unsuitable for development due to its physical condition.

• Where a local authority determines that a site's physical condition precludes development (for example, due to contamination or the presence of archaeological or historic remains), it must notify the liable person in writing, specifying the date from which the site is so affected; the site ceases to be a relevant site from that date.
• A person who has paid RZLT on a site that is subsequently determined to be unsuitable for development may claim a repayment; where only part of the site is affected, the repayable amount is calculated as C = T × (A_part / A_total), where T is the total RZLT paid, A_part is the affected area in square metres, and A_total is the total site area in square metres.
• Where RZLT has been deferred under section 653AGA (deferral on grant of planning permission) and the local authority's determination date precedes the grant of planning permission, the deferred tax attributable to the affected site or part is not due and payable; the same apportionment formula applies where only part of the site is affected.
• Where RZLT has been deferred under section 653AH (deferral on commencement of residential development) and the local authority's determination date precedes the lodging of the commencement notice, the deferred tax attributable to the affected site or part is not due and payable; the same apportionment formula applies where only part of the site is affected.