Taxes Consolidation Act 1997 section 653AH

Deferral of residential zoned land tax in certain circumstances

Section 653AH provides for the deferral of residential zoned land tax (RZLT) where residential development has commenced on a relevant site, and for the abatement of the deferred tax where the development is completed within the lifetime of the planning permission.

• RZLT may be deferred once planning permission has been granted, the development is wholly or partly residential, and a commencement notice has been lodged with the local authority; the deferral applies automatically provided annual RZLT returns are filed on time.
• Deferred RZLT becomes due on the earliest of: works permanently ceasing without completion, a change of ownership without certificates of compliance on completion being lodged, or the planning permission expiring without certificates of compliance on completion being lodged.
• If all residential development is completed and certified within the lifetime of the planning permission, the deferred RZLT is fully abated on claim; if the development is only partially completed, a reduced percentage of deferred RZLT is payable depending on the percentage of completion achieved.
• Intra-group transfers of a relevant site between companies within the charge to corporation tax do not trigger a change of ownership for deferral purposes, but the transferor and transferee are jointly and severally liable for any deferred RZLT that subsequently becomes due.