Dáil Éireann Debate, Tuesday - 8 July 2014
162. Deputy Thomas P. Broughan asked the Minister for Finance his views on extending the home renovation incentive scheme to privately rented dwellings in such a manner that landlords benefitting from the incentive would then be obliged to accept tenants in receipt of rent supplement or the soon to be establish housing assistance payment. [28997/14]
View answerAs the Deputy is aware, the Home Renovation Incentive (HRI) came into operation on 25 October 2013 and will run until 31 December 2015. The incentive provides 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.
The tax credit can only be claimed by the homeowner. In general, landlords can already claim a deduction in their accounts and for tax purposes for expenses incurred on the maintenance of investment properties. As a result, to provide relief under the HRI on such monies would constitute double relief.
In addition, if the works carried out result in the landlord suffering a loss in the tax year, such losses can be carried forward and offset against future tax liabilities. Accordingly, works carried out which are paid for by landlords cannot qualify for the HRI.
As the Deputy will be aware, rent supplement is a matter for the Minister for Social Protection. Therefore, any suggestions in relation to rent supplement should be directed to the Minister for Social Protection.
