Latest news with #RZLT
Irish Independent
2 hours ago
- Business
- Irish Independent
PwC calls for Capital Gains Tax to be slashed to 20pc in Budget
'In our experience, the 33pc rate is deterring taxpayers from undertaking capital transactions, crystallising gains and reinvesting funds in the Irish economy,' its submission says. 'Not only would a lower rate of CGT increase capital transactions, it would also stimulate and promote the transfer of businesses to the next generation of Irish business leaders. 'It would boost Ireland's attractiveness as an investment location, because entrepreneurs consider future exit strategies when considering where to invest.' Treating the exit of a shareholder from a business as a CGT event, rather than one subject to income tax – which is levied at a higher rate – would achieve this objective, PwC says. It claims many Irish business owners face challenges in securing a smooth exit when they decide to leave. The tax bill inhibits the exit of a shareholder that would allow the incumbent to take over the reins. 'We are seeing instances where fully exiting shareholders are subject to taxation at marginal income tax rates, which can have the unintended consequence of making many bona fide transactions, such as management buy-outs, unviable,' the consultancy's pre-Budget submission says. We have seen Irish businesses opting to sell to external and often non-Irish third parties 'In some cases, we have seen Irish businesses opting to sell to external and often non-Irish third parties (eg private equity funds) to secure a tax-efficient exit, as opposed to passing it on to emerging Irish business leaders, often working within the business being sold.' It points out that both the annual CGT exemption of €1,270, as well as the Capital Acquisitions Tax small gift exemption of €3,000, have not been changed for several decades. As neither has been brought in line with inflation, PwC is proposing both exemptions be increased in the Budget. The company says tax policy could also play a vital role in addressing the housing shortage. 'Soft costs' of construction, such as taxes, can be easier to change quickly than 'hard costs', such as labour and materials, PwC argues. Among the tax measures it suggests is a reduction of the CGT rate when investment properties are sold, if they have been retrofitted. This would increase the attractiveness of retrofitting old property stock, and would also contribute towards Ireland meeting its sustainability targets. PwC says the most pressing issue is to change the Residential Zoned Land Tax (RZLT), which was introduced as a land activation measure. The tax is levied on serviced land which has the potential to provide residential housing, but is not being used for that purpose. Where there is a change in ownership of land before it is fully developed, some RZLT deferrals are clawed back. 'Given the increasing popularity of the forward-fund model, particularly with approved housing bodies and other public sector bodies, one significant improvement would be for such transactions to be exempt from clawback provisions,' PwC says. According to new figures from Revenue, approximately 1,800 RZLT returns have been filed to date, with liabilities of almost €40m paid. This is the first year in which a charge arises. In the days leading up to the filing deadline of May 30, Revenue saw a notable increase in the number of site owners registering for RZLT and filing a return. Surcharges, ranging from 10pc to 30pc of the annual liability, apply to late RZLT returns.
RTÉ News
16 hours ago
- Business
- RTÉ News
€40m paid in Residential Zoned Land Tax, according to Revenue
Revenue has announced that approximately 1,800 Residential Zoned Land Tax returns have been filed to date, with liabilities of almost €40 million paid. RZLT applies to land which is zoned for residential use and is serviced, and which has been identified on maps published by Local Authorities as being within the scope of the tax. RZLT aims to prompt residential development by incentivising landowners to activate existing planning permissions, or to engage with planning authorities to seek planning permission in respect of relevant land. 2025 is the first year in which a charge to RZLT arises, and in the days leading up to the filing deadline Revenue observed a notable increase in the number of site owners registering for RZLT and filing a return. It said, to support site owners in complying with their new obligations under RZLT, Revenue extended the 2025 filing deadline by one week, to May 30. Revenye said site owners have continued to engage with the RZLT registration and filing system in the days following the extended filing deadline. While this level of engagement is welcome, site owners are reminded that RZLT is a self-assessed tax and, as such, they are expected to take all reasonable steps to determine whether they have an RZLT liability and, if so, to ensure they meet their pay and file obligations. Site owners are strongly encouraged to familiarise themselves with the RZLT guidance material published by Revenue, which can be accessed here. The tax authority said site owners who meet the conditions for an exemption or deferral from RZLT are reminded that they must still file a return in order to claim the relevant exemption or deferral. Surcharges, ranging from 10% to 30% of the annual RZLT liability, apply to late RZLT returns. The rate of surcharge applicable depends on the length of delay in filing. Site owners who are liable to RZLT and have not yet filed a return, or have not yet paid their RZLT liability, are urged to take immediate action to avoid any further surcharges applying.
Agriland
3 days ago
- Business
- Agriland
Revealed: How much RZLT have local authorities paid to date?
Local authorities have paid out more than €11 million to date in Residential Zoned Land Tax (RZLT) payments to Revenue, according to new figures provided to Independent senator, Victor Boyhan. RZLT applies to land that is included on an annually revised map published by a local authority and that is not a residential property. The self-assessed annual tax is based on the valuation of a relevant site and is calculated at 3% of the market value of the relevant site. The figures were provided to Senator Boyhan by the County and City Management Association (CCMA) which is the representative body for the chief executives of Ireland's 31 local authorities. According to the senator the figures provided by CCMA 'are a revelation in themselves'. He added: 'Central government have empowered Revenue through legislation to pursue our councils to cough-up and pay RZLT, at a time when many councils are struggling financially to provide services and the administrative burden of preparing RZLT return simply does not make sense. 'It raises questions about the governments real commitment to divest more powers and functions form central government to local government'. RZLT According to the figures Dublin City Council has had the highest RZLT bill so far while Leitrim County Council has had the lowest. Source: CCMA Senator Boyhan told Agriland that it is his view that RZLT is 'penalising councils' but he can also understands why council chief executives might be slow to criticise government policy. Today (Friday, June 6) he called for all councils 'to be reimbursed for RZLT paid to date'. Senator Boyhan added: 'I know there are thousands of new homes at various stages in the pipeline either via An Bord Pleanála or councils that have been granted planning permission and have never been commenced and that's where the government needs to focus its energies on if wants to accelerate new housing delivery. 'I too know that An Bord Pleanála have a very large caseload of planning applications for new homes on their desk which they are currently unable to process due to staff shortages. 'So new home proposals are stuck in certain parts of the planning process, the promise rapid roll out of the New Planning Act just hasn't happened, despite the all the political promises.' He believes that its time for companies and organisations that hold full planning permission for housing development to 'use it or loss it' . 'That will flush out real housing opportunities and deliver new homes, that's the sort of proactive policy I want to see the government pursue rather than also targeting agricultural land in active use,' he added. The senator is also urging farm representative bodies to continue to campaign to encourage the government to 'exclude RZLT on land in active farm use and production'.
Agriland
23-05-2025
- Business
- Agriland
Revenue extends deadline to file for RZLT
Revenue has announced that the deadline for submission of annual Residential Zoned Land Tax (RZLT) returns for 2025 has been extended to Friday, May 30, 2025. RZLT is a self-assessed annual tax based on the valuation of a relevant site. It is calculated at 3% of the market value of the relevant site. It aims to activate serviced, zoned land for residential or mixed use to boost housing supply and regenerate vacant, idle urban land. Some farmers and landowners have applied to have their land rezoned. Revenue said it has seen positive levels of engagement from site owners in respect of their RZLT obligations to date, with liabilities of approximately €12 million having been paid. Revenue added that it is, however, aware that some site owners have commenced the process to register for RZLT, but have not yet submitted a return. The extension is aimed at supporting taxpayers by giving them additional time to complete this process. RZLT RZLT aims to incentivise landowners to activate existing planning permissions for housing on land identified on maps published by Local Authorities as meeting this criteria, or to engage with planning authorities and seek planning permission in respect of such land. The tax applies from 2025 onwards, at a rate equal to 3% of the market value of the relevant site. Site owners with land which has been included on the Local Authority 2025 Revised Maps are advised to register for RZLT and submit their return online. There is a 24-hour turnaround time between completing the RZLT registration and issuance of the Site ID required to complete the RZLT return. As such, early engagement with the registration process is encouraged, according to Revenue. Taxpayers are advised to ensure that they have as much information to hand as possible when completing their registration, to ensure that their identity can be verified. Revenue has said that if it is not possible to verify the taxpayer's identity online, password and registration details will be issued by standard post. Taxpayers using an agent or advisor to assist them in filing their RZLT return should note that their agent or advisor must be linked to their Revenue record through the Agent Link Manager Application process. As part of this process, the agent or advisor should initiate the link request, and the taxpayer will then receive a prompt, through their ROS inbox notification or MyEnquiries, to review and accept the request. As a self-assessed tax, Revenue stated that site owners are responsible for determining whether they have a liability to RZLT, and, if so, for satisfying their pay and file obligations. Surcharges will be applied where a site owner, who is required to submit an RZLT return, fails to do so. These surcharges range from 10% to 30%.
Irish Times
22-05-2025
- Business
- Irish Times
Revenue extends filing deadline for residential zoned land tax
The deadline for submission of residential zoned land tax (RZLT) returns for 2025 has been extended by Revenue. It said it had seen 'positive levels of engagement' from site owners with approximately €12 million paid over to date. The decision to extend the deadline to Friday May 30th was taken in order to allow site owners who have commenced the process but who have not yet submitted a return, to complete it. The RZL tax was introduced in 2022 to encourage landowners to develop housing on land that is zoned residential and serviced with the water, power and sewage infrastructure required to build. It applies an annual tax of 3 per cent of the land's market value until housing is built on it. READ MORE It aims to help activate existing planning permissions for housing on land identified on maps published by local authorities as meeting the criteria, or to engage with planning authorities and seek planning permission in respect of such land.
