If you are thinking of doing some work on your property or rental property, Revenue will give you some tax relief on same called
the Home Renovation Incentive. See below
The Home Renovation Incentive (HRI) provides a tax credit for property owners (owner-occupiers and landlords) for qualifying expenditure incurred on repair, renovation or improvement work carried out on a property. Originally, HRI was introduced for works carried out by a homeowner on his or her principal private residence. From 15 October 2014, HRI was extended to include rental properties whose owners (landlords) are liable to income tax.
Homeowners are entitled to claim the tax credit from 2015 and landlords from 2016. In general, the HRI tax credit is payable over two years, starting the year after the work is carried out and paid for.
Qualifying conditions:
- Qualifying works must be carried out by homeowners (owner-occupiers) on or after 25 October 2013 and on or before 31 December 2015. Payments made by homeowners (owner-occupiers) for qualifying works carried out between 25 October 2013 and 31 December 2013 will be treated for tax credit purposes as if they were paid during 2014;.
- Qualifying works must be carried out by landlords on or after 15 October 2014 and on or before 31 December 2015. Payments made by landlords for qualifying works on rented properties carried out between 15 October 2014 and 31 December 2014 will be treated for tax credit purposes as if they were paid during 2015;
- 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 the credit will be given over a two year period following the year in which payment is made for the qualifying work;
- Homeowners and landlords must be Local Property Tax and Household charge compliant in order to qualify while building contractors must be VAT registered and tax compliant in order to carry out work; and.
- Landlords must also have registered the tenancy with the Private Residential Tenancies Board
For further information see Home Renovation Incentive (HRI) scheme
Any queries call me on 091 763817