Building Tips, General

Home Renovation Incentive (HRI) Scheme Extended

  • Home Renovation Incentive Scheme

The Home Renovation Incentive Scheme provides tax relief for Homeowners
and Landlords 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.

In September of last year, seeing the success of the measure, the
Department of Finance announced the extension of the scheme for a further year
until 31st December 2016.

This move allows for extra time for homeowners and landlords to make the
necessary changes to their properties and will provide additional support
to the construction sector for another year.

Tax Relief can be claimed on qualifying expenditures over €4,405.00 before VAT at 13%% per property.

This amount can be the total from any number of jobs carried out and
paid for from 25 October 2013 to 31st December 2016 for Homeowners
claiming on their main home and on or after 15 October 2014 to 31st December 2016
for Landlords claiming on their rental property.

While there is no upper limit on expenditure on qualifying works, the tax credit
will only be given in relation to a maximum of €30,000.00 before VAT at 13.5% per property.

If you are having qualifying work done but aren’t spending over €4405.00,
it is still worth choosing an HRI Qualifying Contractor and entering the work details
on HRI Online

. https://www.ros.ie/myaccount-web/home.html

You may have more qualifying work carried out between now and 31st December 2016
which if added to the previous works could reach the minimum limit of €4405.00 before VAT @13.5%..

The lowest Tax Credit Amount that you can claim is €595.00 (€4405 at 13.5%)
per property and the highest Tax Credit Amount is €4050.00 (€30,000 at 13.5%) per property.

https://www.revenue.ie/en/tax/it/reliefs/hri/hri-general-faqs.htm