Dáil Éireann Debate, Tuesday - 17 December 2013
155. Deputy Tom Fleming asked the Minister for Finance if he will clearly provide details of the tax breaks for home owners who carry out renovations to their homes; and if he will make a statement on the matter. [54076/13]
View answerAs the Deputy is aware, I announced the Home Renovation Incentive in the recent Budget. This scheme will run from 25 October 2013 to 31 December 2015 and provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (inclusive of VAT) which would attract a credit of €595. Where the cost of the work exceeds €30,000 (exclusive of 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. Works carried out between 25 October 2013 and 31 December 2013 will be considered to have taken place in 2014 for the purposes of awarding the tax credit.
Homeowners must be Local Property Tax compliant on all properties they own in order to qualify under the Incentive, while building contractors must be tax compliant in order to carry out works. The scheme will be administered through Revenue’s online systems. Contractors will be required to inform Revenue in advance of details of works to be carried and will also be required to notify Revenue in relation to any payments received in respect of the works. Homeowners will be able to view the information provided to Revenue by the contractor through the Revenue electronic systems and will also claim the relief through those systems.
The type of work covered includes extensions, garages, attic conversions, supply and fitting of kitchens, bathrooms and built in wardrobes, water treatment units, landscaping, window fitting, plumbing, tiling, rewiring and plastering.
Items such as furniture, white goods and carpets are not covered as well as work which is subject to VAT at 23%. Further information is available on the Revenue website at http://www.revenue.ie/en/tax/it/reliefs/hri/hri-general-faqs.html .
