Planning on making some Home Improvements in 2017? Why not avail of the Home Renovation Incentive Scheme?
If you are planning on carrying out any home repairs, renovations or home improvements in 2017, then you may be able to avail of the Home Renovation Incentive Scheme and claim back part of the costs.
The HRI scheme will run until the 31st of December 2017 for Homeowners and Landlords. The Incentive provides for tax relief 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 or rental property by qualifying Contractors.
Qualifying expenditure is expenditure subject to the 13.5% VAT rate.
The works must cost a minimum of €4,405 (before VAT) per property, which will attract a credit of €595. This €4,405 (before VAT) can be the total from any number of jobs carried out and paid for from 25 October 2014 to 31 December 2017. Where the cost of the works exceeds €30,000 (before VAT) per property, a maximum credit of €4,050 will apply.
For example, if Repair My Windows And Doors replaces your windows for €3,800 (before VAT) and you pay €800 (before VAT) to a HRI qualifying painter for painting work on your home, your HRI tax credit is €4,600 x 13.5% = €621.
The credit is payable over the two years following the year in which the work is carried out and paid for.
Homeowners or Landlords must be Local Property Tax and Household Charge compliant in order to qualify under the Incentive. Landlords must also have complied with the Private Residential Tenancies Board registration requirements.
For more information, log onto the Revenue website