Extension of Home Renovation Incentive Scheme for homeowners and landlords


It was announced in Budget 2017 that the HRI is being extended by two years until 31st December 2018 for both homeowners and landlords.

We’ve answered some frequently asked questions in relation to the scheme:

What is the Home Renovation Incentive (HRI) Scheme?

The Home Renovation Incentive (HRI) Scheme provides for tax relief for Homeowners and Landlords by way of an Income Tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement works carried out on a main home or rental property by qualifying Contractors.

The amount of the HRI tax credit depends on the amount spent on qualifying works.

Example

If a Homeowner or Landlord paid €3,800 (before VAT) to a HRI qualifying electrician for rewiring his or her main home or rental property and €800 (before VAT) to a HRI qualifying painter for painting work on his or her main home or rental property, the tax credit is €4,600 x 13.5% =€621.

2015 will be the first year for HRI tax credits for Homeowners and 2016 for Landlords. In general, the HRI tax credit will be included in tax credits over two years, starting the year after the work is carried out and paid for.

Qualifying works carried out between 25 October 2013 and 31 December 2013 and paid for by Homeowners during that period will be treated as if they were paid for in 2014 for tax credit purposes.

Qualifying works carried out between 15 October 2014 and 31 December 2014 and paid for by Landlords during that period will be treated as if they were paid for in 2015 for tax credit purposes.

Who can claim a tax credit under the Incentive?

Owner occupiers of a main home or Landlords of rental properties, who pay Income Tax under PAYE or self assessment and whose Local Property Tax and Household Charge obligations are up to date, are eligible. The Homeowner or Landlord must be on Revenue's Local Property Tax Register as an Owner or joint Owner of the main home or rental property. Landlords must also have registered the tenancy with the Private Residential Tenancies Board

Contact Deirdre McDermott Director OSK for further details on the Home Removation Incentive scheme (HRI) or in relation to OSK’s tax and accounting services.

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