It was announced during the budget on 15 October 2013 that a Home Renovation Incentive is to be introduced which will provide an income tax credit to homeowners who carry out renovation, repair 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 minimum tax credit is €675 based upon 13.5% of a minimum qualifying expenditure of €5,000 excluding VAT and the maximum tax credit is €4,050 based upon 13.5% of a maximum qualifying expenditure of €30,000 excluding VAT.
Qualifying expenditure includes extensions and renovations to the home, window-fitting, plumbing, tiling, and plastering; however, it does not cover items such as furniture, white goods and carpets.
The tax credit is only available to the owner occupiers of a principal private residence who are tax compliant; specifically, the homeowner’s LPT and Household Charge must be up to date.
Building Contractors who are tax compliant are eligible to carry out work under the scheme and the tax credit can be claimed after the work is completed; the scheme will operate through Revenues online systems including ROS, eRCT, PAYE Anytime, and LPT online.
It should be noted that the details announced in the budget may be subject to changes or clarification in the forthcoming Finance (No.2) 2013 Bill, which will be published later in October 2013.
if you require further guidance about the Home renovation incentive, please contact a member of our professional Team on the following number: +353 74 912 2820 or email us at: firstname.lastname@example.org.
The information contained in this update may be subject to change and accordingly is not a substitute for professional advice or services, nor should it be used as a basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional advisor. This firm shall not be responsible for any loss whatsoever sustained by any person who relies on this update