Home Renovation Incentive Extended to the End of 2016

Friday, January 8th, 2016

Home Renovation Incentive

The Home Renovation Incentive scheme, which allows homeowners and landlords a future tax credit for the vat incurred on renovations of their home or rental property at a rate of 13.50% and carried out by tax compliant contractors, has been extended by 1 year to the end of 2016, it has been announced by the department of finance. The qualifying spend must be between €4,405 and €30,000 before Vat and effectively allows the house owner to carry out such repairs net of Vat.

This scheme provides a tax relief by way of an income tax credit on repair, renovation or improvement works on principal private residences or rental property carried out by tax compliant contractors. In addition to providing an income tax relief, the HRI also aims to support tax compliance in the building industry by moving activity out of the shadow economy into the legitimate economy.

 

What Type of Works Qualify?

Examples of repair, renovation or improvement works that qualify under the Home Renovation Incentive include –

• Painting and Decorating.

 

• Rewiring.

 

• Tiling.

 

• Supply and Fitting of Kitchens.

 

• Extensions.

 

• Garages.

 

• Landscaping.

 

• Supply and Fitting of Solar Panels.

 

• Conservatories.

 

• Plastering.

Plumbing

• .

Bathroom Upgrades

• .

 

• Supply and Fitting of Windows and Doors.

 

• Attic Conversions.

 

• Driveways.

Oil Boiler Upgrade

• .

Gas Boiler Upgrade

• .

 

• Supply and Fitting of Built in Wardrobes.

 

• Conversion of a Residential Premises into Multiple Rental Units.

 

• Supply and Fit of Alarm Systems.

 

Radon Remediation Works.

 

What Type of Works don’t Qualify?

Carpets, furniture, white goods (such as fridges, dishwashers) and services (such as architect’s fees) with a VAT rate of 23% don’t qualify. Materials a Homeowner or Landlord buys such as paint, tiles and so on, don’t qualify.

What Type of Residential Property Qualifies?

A qualifying residential property is –

• A Homeowners main home, which the Homeowner must own and live in.

 

• A second hand home, which the Homeowner has bought and will live in as the Homeowner’s main home after the works have been carried out.

 

• A Landlord’s rental property which must be occupied by a tenant and registered with the Private Residential Tenancies Board.

 

A Landlord’s rental property, which will be occupied by a tenant and registered with the Private Residential Tenancies Board within 6 months of the completion of the works.

 

What Type of Home Doesn’t Qualify?

The following don’t qualify for the HRI –

• Holiday homes.

 

• New builds.

 

A refurbishment or a reconstruction of an uninhabitable house.

 

Click here for more information on the HRI.

 

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