CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Irish Revenue Explains Home Renovation Incentive

Irish Revenue Explains Home Renovation Incentive

by Jason Gorringe, Tax-News.com, London

20 December 2013


The Irish Revenue agency has released further details of the new Home Renovation Incentive (HRI), which provides tax relief for qualifying improvements.

The HRI scheme, included in Finance Bill 2013, will run from October 25, 2013, to December 31, 2015. Homeowners will be able to apply for an income tax credit at 13.5 percent of qualifying expenditure on repair, renovation or improvement works carried out on a main home by approved contractors.

Contractors must give homeowners evidence of their business name and value-added tax (VAT) number, along with either a current relevant contracts tax (RCT) rate notification or a current tax clearance certificate. A receipt should be obtained for each payment made to the contractor.

Homeowners must be local property tax (LPT) compliant.

The works must cost a minimum of EUR4,405, before VAT. Where the cost exceeds EUR30,000 (before VAT), a maximum credit of EUR4,050 (USD6,062) will be available. 2015 will be the first year for HRI tax credits. It will be payable over the two years following the year in which the work is carried out and paid for. Qualifying expenditure will be subject to the 13.5 percent VAT rate.

Transitional arrangements are outlined in a scheme guide published by Revenue. It is relevant to qualifying works carried out and paid for before April, 2014. After that date, Revenue will introduce an electronic HRI system. It will issue further information on the changes close to the "go live" date.

TAGS: compliance | Finance | tax | business | tax compliance | Ireland | property tax | tax incentives | tax credits | tax authority | contractors | tax rates

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »