The Society of Chartered Surveyors Ireland has launched a new guide to the Home Renovations Incentive scheme, which shows homeowners how to claim tax relief on the costs of an extension or refurbishment of their home.
The scheme, which allows homeowners to claim tax refunds from a minimum of €600 to a maximum of €4,050, depending on the costs involved, was introduced in Budget 2014 and will run until 31 December 2015.
All work that costs between €5,000 and €30,000 is eligible and the guide includes several case studies and a HRI calculator that estimates the tax refund due.
“This scheme is most welcome but if homeowners want to claim tax relief they need to be aware of the regulations and obligations which apply,” said the chairman of the Building Surveyors Professional Group of the SCSI, Kevin Hollingsworth.
“For example the scheme is only open to fully tax compliant builders as the spending and the relief have to be registered with the Revenue Commissioners. It only applies to a person’s principal private residence and homeowners wishing to avail of it will have to ensure their local property tax and household charge payments are up to date.”
The guide covers the planning, design and budgeting stages as well as hiring a builder. It also outlines the health and safety obligations for the householder as well as the formula that applies to anyone claiming a Sustainable Energy Authority of Ireland grant.
“Many people don’t realise that the refund doesn’t just apply to major projects,” said Hollingsworth. “It can also be claimed for all renovations or building work carried out over the two year period and which costs between €5,000 and €30,000.”
The HRI guide and calculator, which also includes links relating to building standards and health and safety and to Revenue, is available free of charge at www.scsi.ie.