The Home Renovation Incentive provides a tax credit for homeowners (owner-occupiers) for qualifying expenditure incurred on repair, renovation or improvement work carried out on their principal private residence.
- The work must carried out on or after 25 October 2013 and on or before 31 December 2015.
- Payments for qualifying work which are made between 25 October 2013 and 31 December 2013 will be treated as if they were made in 2014.
- If planning permission is required and is in place by 31 December 2015, then payments made in respect of qualifying work carried out between 1 January 2016 and 31 March 2016 will qualify under the incentive.
- Qualifying works must cost a minimum of €5,000 (including VAT at 13.5%). The €5,000 can be made up of a number of payments to different qualifying contractors.
- There is no upper limit on the cost of the works but the maximum amount on which relief can be claimed is €30,000 (before VAT).
- The tax credit will be 13.5% of the cost of the works (before VAT), subject to the minimum and maximum amounts. It will be included on your Tax Credit Certificate or Income Tax Notice of Assessment and will be given over a 2 year period following the year in which payment is made for the qualifying work.
- Homeowners must be LPT and Household charge compliant in order to qualify while building contractors must be VAT registered and tax compliant in order to carry out works.
For further information see: ‘Home Renovation Incentive (HRI) scheme‘