Revenue Ruling No. LT31

Exemption for Retirement Villages and Nursing Homes


1. As announced in the 1990 Budget Speech, the Land Tax Management Act 1956 has been amended to exempt land used for a nursing home or a retirement village (or both), whether or not for pecuniary profit. The exemptions apply for the 1991 land tax year. Previously, these institutions were only exempt if operated by an exempt organisation, such as a religious society or a charitable institution.

2. A retirement village must meet the definition contained in the section 10R of the Act, which is based on that contained in the Retirement Villages Act 1989 and the Retirement Villages Code of Practice, 1989.

3. Where land is only partly used for a retirement village and/or a nursing home, a partial exemption is available. The purpose of this Revenue Ruling is to explain how owners should calculate their liability in cases where a partial exemption is applicable.


4. Section 10R(3) provides that if the Chief Commissioner is satisfied that only part of the land is used and occupied as a retirement village and/or a nursing home, the adjusted value of the land will be reduced by the proportion of the total area of the land which is so used. Owners are responsible for determining the proportion of the land so used in the first instance. Owners should indicate briefly in their return or an accompanying letter, the basis on which the calculation was made.

5. It should be noted that any part of the land which is used for purposes which are ancillary to use as a retirement village and/or nursing home is also exempt. Such uses include leisure areas for the use of residents such as a swimming pool, a tennis court or a park, or a kiosk or shop(s) whose principal function is to serve residents.

6. Where land is only partly developed as a retirement village and/or nursing home, partial exemption will apply. Owners may calculate the partial exemption based on the area actually in use. However, where planning approval has been obtained for the development of the unused portion, a calculation based on the number of units of accommodation in the partial development compared with the number of units once the land is fully utilised will be accepted.

7. If owners are unsure of the proportion of land for which exemption may be claimed, a submission should be made to the Office of State Revenue, setting out all relevant details.


for Chief Commissioner of Land Tax

26 March, 1991