Home Renovation Incentive Scheme (HRI) Construction Company, Dundalk, Co Louth.
Homeowners can claim a tax credit on home improvements to the value of €30,000.
Home Renovation Incentive Scheme (HRI) Authorised Builder
A home Renovation Incentive Scheme was announced in Budget 2014 which will run from 25 October to 31 December 2015. The Scheme will give homeowners a tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement work carried out on a principal private residence. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work is more than €30,000 (exclusive of VAT), a maximum credit of €4,050 will apply. The credit is payable over the two years following the year in which the work is carried out.
Home Renovation Incentive Tax Break Conditions
The work must commence on or after 1 January 2014 and be carried out during 2014 or 2015. Homeowners must be LPT compliant in order to qualify under the Scheme while building contractors must be tax compliant in order to carry out works. The Scheme will be administered through Revenue’s online systems. Further information will be available on the Revenue website.
The following information was announced in the Budget on 15 October 2013.
What is the Home Renovation Incentive Scheme?
The Home Renovation Incentive Scheme provides a tax credit for homeowners on repair, renovation or improvement work to a principal private residence.
Is there a minimum and maximum amount for the repair, renovation or improvement work?
Qualifying work must cost a minimum of €5,000 excluding VAT (or €5,675 including VAT). While there is no upper limit on the cost of work, the maximum tax credit is linked to qualifying expenditure on work costing €30,000 excluding VAT.
Is there a minimum and maximum tax credit?
The minimum tax credit is €675 ( based work costing €5,000 (excluding VAT) x 13.5%) and the maximum is €4,050 (based on work costing €30,000 (excluding VAT) x 13.5%). The tax credit is non refundable so any unused tax credit will roll forward to the next year. The tax credit is payable over the two years following the year in which the work is carried out.
When does the Home Renovation Incentive Scheme begin and how long will it last?
The scheme applies to work commenced on or after 25 October 2013 and carried out during the last two months of 2013, or all of 2014 and 2015.
What type of work is covered?
Repair, renovation or improvement work to a principal private residence, which is subject to VAT at 13.5%, is covered. Furniture, white goods and carpets are not covered.
Will the value of my Property for LPT purposes change as a result of the repair or improvement work?
No. The valuation of your property for LPT purposes on 1 May 2013 will stay the same for 2013, 2014, 2015 and 2016 no matter what improvements you make to your property.
If the Owner doesn’t pay tax, can someone else pay for the work and claim the tax credit?
No. The tax credit is only available to the owner occupier.
Home Renovation Incentive Scheme Who is eligible?
- Owner occupiers of a principal private residence who are tax compliant are eligible. Specifically, the homeowner’s LPT and Household Charge must be up to date
- Building Contractors who are tax compliant are eligible to carry out work under the scheme.
At what stage can I claim the tax credit?
The tax credit can be claimed after the work is completed.
How will I claim a tax credit under the Scheme?
The scheme will operate through Revenue’s online systems – ROS, eRCT, PAYE Anytime, LPT online.
What will I have to do?
Homeowners should ensure that your tax and specifically your LPT and Household Charge are up to date. (HRI)