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The following is an update regarding certain aspects of RZLT.

Confirmations under s653Z(4)(b) of the Taxes Consolidation Act 1997 (TCA)

In the context of the sale or transfer of a relevant site (as defined in section 653O TCA), Revenue is required by virtue of s653Z(4)(b) to provide confirmation to the liable person, or a person acting on their behalf, that there are no outstanding amounts of RZLT payable in respect of the relevant site at the date of sale/transfer. Revenue has confirmed that those confirmations are available on the RZLT portal, which may be accessed on the Revenue Online Service via the ‘My Services’ or ‘Agent Services’ tabs. Once in the portal, go to ‘Other Services’ and then ‘View Site History’ should be selected. To access the site history for a particular property, the following information will be required:

1. Site ID for RZLT
2. Owner TRN (Tax Reference Number for RZLT)
3. Site Access Number (‘SAN’)

The following information will be available:

1. Total RZLT charge
2. Amount paid
3. Balance remaining

This page may be printed. Revenue has emphasized that, as RZLT is a self-assessed tax, the site history is based on the returns filed at the date on which the site history is accessed and that the confirmation obtained in the manner above does not constitute a ‘tax clearance’. Despite a Law Society request for it to do so, Revenue has advised that it is not in a position to confirm that it will not pursue a relevant site in respect of unpaid RZLT in circumstances where it has issued a confirmation under s.653Z(4)(b) that there are no outstanding amounts payable in respect of RZLT. As outstanding RZLT constitutes a charge on land under s.653Q(4), this creates difficulties for purchasers. where Revenue has not registered a charge against the relevant site at the time of the sale/transfer. The Law Society is engaging with the Department of Housing, Local Government and Heritage seeking the necessary policy and legislative changes required to give purchasers more certainty. In the interim it is advisable that, save in the case of a new home, as discussed below, when acting for the purchaser or transferee of a relevant site, the vendor is requested to furnish, not only the site history, obtained from the RZLT portal, but also such other information in relation to the returns made as the purchaser’s/transferee’s tax adviser deems necessary to enable the tax adviser to establish the position.

New homes

Section 653O(5) TCA provides that, where RZLT has been deferred in respect of a relevant site in accordance with s653AH TCA and the development of that site is fully completed within the lifetime of the planning permission relating to it, it will cease to be a relevant site on the lodging of the certificate of compliance on completion. Revenue has confirmed to the conveyancing committee that, where part only of the site has been fully developed within the lifetime of the planning permission, the part of the site which is fully developed ceases to be a relevant site. Revenue has further confirmed that, where a developer completes one house in a development of multiple houses and lodges a Certificate of Compliance on Completion (BCAR) with the relevant building control authority, the area of the relevant site to which the BCAR relates is no longer treated as a relevant site and is no longer liable to RZLT. The committee is, therefore, of the view that, when responding to Requisition 45 in relation to a house in the course of construction, the developer’s solicitor should respond along the following lines:

‘Requisition 45.1 - The property comprises a dwelling in the course of construction and a Certificate of Compliance on Completion, along with evidence of lodgment with and receipt/approval by the relevant Building Control Authority, together with an Opinion of Compliance with Planning Permission will be furnished on completion.

Requisition 45.3 – The property is currently comprised in a relevant site but, upon lodgment of the Certificate of Compliance on Completion with and receipt/approval by the Building Control Authority the property will cease to be a relevant site. The rest of these requisitions are not applicable. ‘

The Conveyancing Committee is of the view that in the case of newly developed homes, once the purchaser is furnished with the BCAR and evidence of lodgment with and receipt/approval by the relevant Building Control Authority and the Opinion on Compliance with Planning Permission no further enquiry in relation to RZLT is required. Care should be taken to ensure that the BCAR has been issued, lodged with and receipted/approved by the relevant Building Control Authority within the lifetime of the relevant planning permission.

Apportionment

RZLT is not one of the items which is to be apportioned in accordance with General Condition 23 of the Conditions of Sale 2023 (Revised) edition. Accordingly, whether RZLT liability is to be apportioned between the vendor and the purchaser is a matter for negotiation between the parties. Where such apportionment is agreed, an appropriately drafted Special Condition should be included in the contract, setting out that agreement.

The committee continues to keep RZLT under review and to engage with Revenue and the Department of Housing, Local Government and Heritage. Further updates will issue in due course.