The home Renovation Incentive scheme (HRI) enables homeowners to claim tax relief on repairs, renovations or improvement work that is carried out on their homes by tax-compliant contractors and is subject to 13.5% VAT.
This will be paid in the form of a tax credit at 13.5% of qualifying expenditure, which can be set against your income tax over 2 years. In general, qualifying work must be done between 25 October 2013 and 31 December 2015.
To qualify for the HRI, you must be an owner-occupier and the work must be carried out on your principal private residence. You must be up to date with your obligations under the Local Property Tax and, if applicable, the Household Charge. You must be paying income tax – whether under PAYE or self-assessment – to avail of the HRI.
Any contractor you use must be registered for Value Added Tax (VAT) in Ireland and be tax-compliant.
The qualifying work must cost at least €5,000 (excluding VAT at 13.5%). You will only get the tax credit in relation to a maximum of €30,000 (VAT excluded) during the 2 years covered by the HRI.
The minimum credit is €675, based on qualifying expenditure of €5,000. The maximum is €4,050, based on qualifying expenditure of €30,000.
For more information go to Home Renovation Incentive (HRI)