Renovating can really add to the comfort, use and value of your home. If you like the home you live in, renovating rather than selling up and buying elsewhere is a cost effective option. Renovating your home also gives you the opportunity to make it more energy efficient by insulating and upgrading your heating system.
Home Renovation Incentive Scheme
The Home Renovation Incentive scheme enables homeowners or landlords to claim tax relief on repairs, renovations or improvement work that is carried out on their main home or rental property by tax-compliant contractors and that is subject to 13.5% VAT. It was introduced for homeowners in October 2013 and was extended to landlords in October 2014.
The Home Renovation Incentive (HRI) is 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. This effectively reduces the rate of VAT to zero on qualifying work (up to a value of €30,000).