Thanks for the response. I was aware of that section in the FAQ, however the nub of the question is: when does a new build stop being a new build? who is considered the "new builder", the person who buys the house or the person who builds the house? I am buying a fully completed house at full price not building a house. Thereafter I am altering the house. So essentially, at what point does it stop being considered a new build and any changes/work carried out be considered renovations under this scheme
I'm in the same boat. How did you solve this problem? Did you find a satisfactory answer - can you share? The big question is what is 'new build' for the purpose of Home Renovation Incentive. Are things like attic conversion or garden landscaping for new build houses permitted under HRI?
I wonder where have Revenue got the 'New builds' aspect from.
I was curious enough to browse Finance (No 2) Act 2013 that established HRI:
‘qualifying residence’, in relation to an individual, means a residential premises situate in the State—
(a) which is owned by the individual and which is occupied by the individual as his or her only or main residence, or
(b) which has previously been occupied as a residence and has been acquired by the individual for the purposes of occupation by the individual as his or her only or main residence on completion of the qualifying work and which is so occupied upon completion;
as you see the legislation says nothing about the house being new or old (note, either occupied now in condition a), OR bought second hand to occupy in condition b).
The Finance Act 2014 expanded the HRI to rental properties:
“‘qualifying residence’, in relation to an individual, means a residential premises situate in the State—
(a) which is owned by the individual and which is occupied by the individual as his or her only or main residence,
(b) which has previously been occupied as a residence and has been acquired by the individual for the purposes of occupation by the individual as his or her only or main residence on completion of the qualifying work and which is so occupied upon completion,
(c) which is owned by an individual and occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual, or
(d) which is owned by an individual and which is intended by the individual to be occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual and which is occupied by a tenant within 6 months of completion of the qualifying work;”,
they did drop 'OR', but since a) and is mutually exclusive from c) and d), one can assume that it's either a), or b), or c) or d). Which means it can be a new build.
I would qualify it though to account for the spirit of the legislation - it seems Government wanted for additional renovations/improvements beyond what is required to make new build habitable - see Dail discussion 2013 where Finance Minister Noonan clarified the spirit (cannot post a link - but you can find Dail Debate on HRI - Nov 2013) -
they don't want you to do a kitchen in a new build (which should be included as standard). Although they seem to imply that new build is excluded (not sure why, as Finance Act doesn't say that new build is excluded), Noonan said they wanted to incentivise extra work (I guess things like garden landscaping, or attic conversions, which are not necessities to make the dwelling habitable, but are extras to support construction section - that was the intention of the legislation).
On William Merrigans Accountants website I've found:
williamsmerrigan.ie/index.php/42-news/taxation-latest-/131-home-renovation-incentive
Relief is not available for the purposes of fitting out a newly built house where the fitting out is necessary to make the house habitable.
Obviously, it's not binding interpretation, but it seems to confirm what I wrote earlier - that for basic fittings that should be in the house anyway, HRI is not applicable. But if you do some thing extra beyond basic fittings, one can figure out HRI relief is applicable.
I've also found info on Revenue website, which seems to clarify the 'new build'
cannot attach the link - document is entitled ''Home Renovation Incentive (HRI)' and has a number '15-01-43' - below extract from the PDF under this link - this was reviewed/updated by Revenue in Dec 2015
Principal private residences
A qualifying residence is a residential premises which is owned and occupied by the individual incurring the expenditure and which is his or her only or main residence. The property must be situated in the State.
Also, where a property, which has previously been occupied as a residence, is acquired for the purpose of occupation as the only or main residence of the new owner, qualifying work on the property will qualify for relief.
Relief is not available for the purposes of fitting out a newly built house where the fitting out is necessary to make the house habitable.
So the big question is, which I don't know answer to, why did Revenue say new build is excluded.
Also, you asked a very valid question - when new build stops to be new build.
However, it looks like expenditures for works like attic conversions, garden landscaping are eligible for Home Renovation Incentive (per Revenue interpretation, which seems to be consistent with the letter and the spirit of the HRI legislation in Finance Acts 2013 (No2) and 2014).