Home Renovation Incentive tax scheme introduced

2014 and 2015

13.5% of all qualifyign expendtutre from €5k to €30k

only for tax compliant builders

From the Annex

20. Home Renovation Incentive Tax relief of 13.5% will be available for qualifying expenditure on home renovation and improvement work. The relief will be granted by way of a tax credit split over two years following the year in which the works are carried out. The minimum expenditure must be €5,000 and relief will be provided up to a maximum of €30,000. The relief will be linked to the Principal Private Residence of an individual and the contractor must be tax compliant. Target: To give a boost to tax compliant businesses in the construction sector.

And now builders will increase their prices by 14%

patrickjd said:

And now builders will increase their prices by 14%

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Very true

alser said:

Am I right in saying you will be getting the work done tax free? i.e VAT is 13.5% on the work?

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I think its more a case that if the work costs say 10,000 then you would get a tax credit of 675 in 2014 and also in 2015. I think.

im living in my own house for the past 16 years . in the meantime my old family home has become vacant due to my mam and dad dying in that space of time and i now own it. i have in the last few months being drawing up plans for my parents house in which i want to extend and renovate the old house . my plan is that i will end up living in the old family home as my private principal residence but not before doing it up as it really needs a lot of attention. my question is will i be entitled to this 13.5% tax relief on jobs done on this house

I doubt it.

I presume you will have to state that it is your own home. But you could make a submission on it.

Brendan

I am getting my attic converted in November. Or am I too early to qualify.

Brendan Burgess said:

I doubt it.

I presume you will have to state that it is your own home. But you could make a submission on it.

Brendan

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I'd guess a lot of renovation is done when someone buys an old house and does it up prior to moving in, so if they exclude Seanieboy they'd be excluding everybody buying an old house that they'd prefer to not move into straightaway.

This is a relief that the government will want to give as chances are it means extra tax overall from the construction sector so it's not in their interest to be restrictive.

I'm in the midst of major renovations with approx 50k yet to be invoiced - tax compliant builder etc. Do ye think I'll be eligible for the relief?

Is the tax credit up to a maximum of 30k or the value of the works - in reality 30k expenditure doesn't get you terribly far in house renovation.

Max tax credit of 13.5% of 30k i.e. €4020


Home Renovation Incentive (HRI)

I am introducing a home renovation tax incentive scheme. The Home Renovation Incentive will provide an income tax credit to homeowners who carry out renovation and improvement works on their principal private residences in 2014 and 2015. The incentive is payable over the two years following the year in which the work is carried out. The credit will be calculated at a rate of 13.5% on all qualifying expenditure over €5,000 up to a maximum of €30,000. Qualifying works include extensions and renovations to the home, window-fitting, plumbing, tiling and plastering. This incentive will support fully tax compliant builders and will move activity out of the shadow economy into the legitimate economy as all expenditure and relief claims will have to be registered electronically with the Revenue Commissioners.

Thanks for clarification and links.

Tarmacadm

Does Tarmacadm apply under this scheme??

can anyone shed some light on what is considered "qualifying expenditure"?

is there a list of items?

im in the middle of building a garage , im LPT paid up and the builder is invoicing me at 13.5% vat,

should i stop the build and continue in Jan 2014 and get him to invoice me in jan.

does a garage even qualify as home improvements?

cheers Thanks

alser said:

ITs not on labour costs e.g. If a you by a light fitting your charged 23% vat in a shop but if your builder supplies and fits the light fitting it fall under 13.5% vat. Therefore fixture do fall under this scheme

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isnt that double vat? ie shop charges the builder 23% vat, then the builder stick another 13.5% on top of it?

mc-BigE said:

isnt that double vat? ie shop charges the builder 23% vat, then the builder stick another 13.5% on top of it?

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I don't think the builder has to pay the 23% and, if they do, they can claim it back.

true. but im thinking more about the owner of the house getting charged 23+13.5% vat on work done and materials

Can you get it twice (€60k) if husband and wife?