The Budget 2014 provides for a Home Renovation Incentive Scheme which will run from 1st January 2014 to 31st December 2015.
The Scheme provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure 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 (exclusive of VAT) which would attract a credit of €675.
- 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 work must commence on or after 1 January 2014 and be carried out during 2014 or 2015.
- Homeowners must be LPT compliant in order to qualify under the Scheme while building contractors must be tax compliant in order to carry out works.