Owner-occupiers of a main home or landlords of rental properties may be eligible to claim tax relief under the Home Renovation Incentive (HRI) Scheme.
HRI provides tax relief by way of an income tax credit at 13.5% of qualifying expenditure on repair, renovations, or improvement works on your main home or rental property by qualifying contractors.
You can claim tax relief on these works if they total over €4,405 (before VAT at 13.5%) per property. The jobs must be carried out anytime, by a qualifying contractor, from 25 October 2013 to 31 December 2018 for homeowners and from 15 October 2014 and up to 31 December 2018 for landlords.
HRI eligible work
- Extensions
- New heating system
- Insulation
- Bathroom upgrades
- Installing a stove
- Attic conversions
- Fitting new alarm systems
- Solar panels
- Plumbing
- Plastering
- Driveways
- Conversion of residential premises into rental units
- Tiling
- Rewiring
- Radon remediation work
- Painting and decorating
Does the work still qualify if I get a grant?
Yes but not the full amount. The qualifying expenditure will be reduced by 3 times the amount of the grant.
So for example:
You pay €10,000 on upgrading insulation and receive €2,700 under the Better Energy Homes Scheme.
So, the €10,000 will be reduced by €2,700X 3 or €8,100.
€10,000 less €8100 leaves €1,900
The €1900 has a VAT of €226
Under the scheme, you can claim a tax credit of €1900 less the €226
The tax credit is: €1,674X13.5%=€225.99
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