The Home Renovation Incentive provides for tax relief for homeowners by way of an income tax credit at 13.5% of qualifying contractors.
Tax relief may be claimed on qualifying expenditure from €5,000 to a maximum spend of €30,000 inclusive of VAT. The income tax credit is payable over 2 years following the year in which the work is undertaken. Unused tax credits may be carried forward to the next tax year.
Qualifying works must be carried out on or after 25th October 2013, and up to 31st December 2015. Qualifying works carried out between 25th October 2013, and 31st December 2013, and paid for during that period will be treated as though they were paid in 2014 for credit purposes. Where planning permission is required, and is in place prior to 31st December 2015, works carried out up to 2016 will qualify for relief. The works may be phased, and multiple payments to different contractors are allowed. Claims may be made for costs at the 13.5% rate of tax and excluding anything subject to VAT at 23%.
In order to qualify for relief Homeowners must be LPT (Local Property Tax) compliant and Contractors must be registered for VAT and RCT (Relevant Contracts Tax) and must have a tax clearance certificate.
If you need advice in this area please get in touch with us and call FMB on 01 645 2002.
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