Home Renovation Incentive (HRI)
Finance (No 2) Act 2013 provides for a Home Renovation Incentive (HRI) scheme, which will run from 25 October 2013 to 31 December 2018. The Incentive provides for tax relief for Homeowners by way of an Income Tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement works carried out on a main home by qualifying Contractors.
Garden sheds, garages & storage units count as home improvements so any purchase made for a private individual for their principal residence will qualify once the cost is over €5,000inc VAT
Qualifying expenditure is expenditure subject to the 13.5% VAT rate.
The works must cost a minimum of €4,405 (before VAT), which will attract a credit of €595. Where the cost of the works exceeds €30,000 (before VAT), a maximum credit of €4,050 will apply.
The credit is payable over the two years following the year in which the work is carried out and paid for 2015 will be the first year for HRI tax credits.
- The works must be carried out on or after 25 October 2013 and up to 31 December 2018.
- Homeowners must be Local Property Tax and Household Charge compliant in order to qualify under the Incentive
See the Home Renovation Incentive (HRI) Brochure – click here