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Farmers have until 1 April 2025 to make a rezoning request to remove their farmland from the residential zoned land tax (RZLT) for 2025.
The Finance Act 2024 provides a further opportunity to landowners whose land appears on the 2025 revised map, published on 31 January, to request the rezoning of such land by the local authority.
Landowners who make such a rezoning request may claim an exemption from the 2025 tax liability where certain conditions are met, Revenue has advised.
“In order to claim the exemption, the landowner must make a rezoning request in the period 1 February 2025 to 1 April 2025 even if they have requested a change to the zoning of the land previously.
"The local authority will provide written acknowledgement of the landowner’s submission no later than 30 April 2025,” Revenue stated.
Planning permission
It said that this written acknowledgement will provide details of the land or part thereof, if any, that is subject to a current planning permission or planning application for residential development.
“The exemption may not apply if the rezoning request relates to land that is the subject of a current planning application (including an application which is the subject of an appeal and/or judicial review) which proposes, or an extant planning permission which allows, residential development.
“If part of the land in respect of which a rezoning submission has been made is the subject of a current planning application for residential development, then that part will still be subject to RZLT for the 2025 year, while the rest of the land may be exempted. The local authority will issue their determination on the rezoning request on or before 30 June 2025,” it added.
Case study
Revenue has provided this example of a farmer with land he wishes to exclude from the tax.
Tony owns a 2.5ha piece of farmland outside Monaghan town that is serviced and zoned for residential use. The land is included on the revised map for 2025 published by Monaghan County Council by 31 January 2025.
He must register with Revenue as the owner of a relevant site and must file a return by 23 May 2025. Tony makes a submission to Monaghan County Council on 15 February 2025 requesting that the entire 2.5ha site be rezoned to reflect its current economic use.
He receives a letter from Monaghan County Council acknowledging his submission and confirming that 1ha of the land is the subject of a current planning application.
When Tony files his 2025 return, he can claim an exemption in respect of the 1.5ha of his farm that is not the subject of the current planning application.
RZLT in respect of the 1ha of land which is the subject of a current planning application for residential development is due and payable by 23 May 2025, as the exemption does not apply to this land.
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