Will huge delays in paperwork for my late mother’s home make us liable for vacant home tax?

I’m worried about letters reported to come from Revenue about the Vacant Homes Tax levy.

Question

My position is that my parents’ family home is stuck in probate for months. My mother, who died in 2020, did not have a will (my father died years ago) and, as such, we have extensive paperwork and documentation to file.

There are huge delays on this and the house has been vacant for almost three years.

This is not our fault and I am worried about receiving such a letter.

What is my position? Do we have to pay the tax?

ŴWe have no eventual tax liability on the inheritance as the house was all she owned and there are three of us children.

Answer

The Vacant Homes Tax (VHT) is payable on residential properties in use as a dwelling for less than 30 days in a 12-month chargeable period.

The charge comes into play from November 1, 2023, and is a multiple of the Local Property Tax.

If you do get a letter to advise you a charge may be due (and even if you don’t), you may be asked to confirm the status of the property and submit a VHT return anyway.

However, it seems to me that the estate is currently in legal limbo. Applying for Letters of Administration (where a person dies intestate, or without a will), can be a lengthy and laborious process, as you are finding out.

So you neither own the house, nor are liable for the tax on it at present. However, establishing this may be important as exemptions apply for VHT in precisely this situation, so don’t worry.

When the Grant of Administration is issued from the Probate Office to you, you can file a return based on the unoccupancy of the house – currently the first chargeable period ends on October 31, 2024.

According to Revenue, where the owner (your mother) occupied the property as their sole or main residence before their death, an exemption will apply on the ‘valuation date’, which for you is the date you actually retain the property.

As an aside, I do hope you have engaged a solicitor to administer the probate for you — it’s difficult enough without that and they will also smooth the path for responsibilities like this.

Source: Irish Independent