As 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 HRI 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 and housing assistance payments are a matter for the Minister for the Environment, Community and Local Government. Therefore, any suggestions in relation to rent supplement and housing assistance payments should be directed to the relevant Ministers in the first instance. However, I have no plans to extend the HRI to landlords who accept these payments.
