Friday, January 8th, 2016
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.
Examples of repair, renovation or improvement works that qualify under the Home Renovation Incentive include –
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.
A qualifying residential property is –
The following don’t qualify for the HRI –
Click here for more information on the HRI.