This year’s budget saw the introduction of the Home Renovation Incentive (HRI) Scheme, which offers homeowners tax relief by way of a 13.5 per cent tax credit on repairs, renovations or home improvement works carried out on their principal residence.
The scheme was originally scheduled to start in January but is now in operation with immediate effect and will run through to December 31 2015. To qualify, the work must cost a minimum of €5,000, exclusive of VAT, which would equate to a tax credit of €695.
The Government’s move to bring forward the qualification date for the Home Renovation Incentive in the Finance Bill has been welcomed by the Construction Industry Federation (CIF). The CIF had expressed concern that the measure was leading to the cancellation of orders and other work, creating cash flow issues.
This issue has been addressed by the Government in the Finance Bill with the commencement date for the scheme now being set for 25 October. So any orders placed between now and the end of 2015 will qualify.
While there is no limit on the cost of the work, the maximum cost covered by the relief is €30,000, exclusive of VAT which would give a maximum credit of €4,050.
The relief will be granted by way of a tax split over two years following the year in which the work is carried out.
The works that qualify include home extensions and renovations include window fitting, plumbing, tiling, plastering and insulation. Goods such as furniture, carpets etc are not included in the scheme. Any work that is already granted aided will also not qualify for the scheme.
However householders should note that if an individual were to buy a kitchen or bathroom and then separately ask a construction contractor to install the kitchen or bathroom, only the labour element would qualify for the scheme. If the kitchen or bathroom were purchased through the construction contractor as well then the materials would qualify too.
To qualify, applicants have to be owner occupiers applying to have works carried out on their principal residence. The tax credit is only available to owner occupiers who are registered and compliant for local property tax and they must have paid the household charge.
The relief can only be claimed after the work is completed and will operate through the Revenue’s Online Service (ROS). This means applicants will also have to use building contractors who are tax compliant.
Why not call Westbuild Homes for a free quotation and advice on how to make improvements to your home and save money while doing so using the Home Renovation Incentive. Contact Westbuild Homes 091-739540/087-8324044.