A new Home Renovation Incentive scheme was announced in the Budget for homeowners who carry out repair, renovation or improvement work on their principal private residence in 2014 and 2015. In the Bill, this timeframe has been brought forward to run from 25 October 2013 to 31 December 2015 (Section 5). In addition, qualifying expenditure incurred between 1 January 2016 and 31 March 2016 can be treated as having been incurred in 2015 where planning permission had been granted before 31 December 2U15.
Relief will be available in the form of an income tax credit of 13,5% on qualifying expenditure over €5,000 and up to a maximum of €30,000. Work qualifying for relief includes building extensions, window fitting, plumbing, tiling and plastering carried on by tax compliant builders. The credit will be split over the two years following the year in which the work is carried out and any grant aid, compensation or tax relief received wilt reduce the relief available. The home owner must be LPT compliant to avail of the credit and Revenue’s on-line systems will track information on contractors involved and the works being carried out.