New tax reliefs can help you get your home in shape

Kya deLongchamps says new tax reliefs can help you get your home in ship-shape.

If you are considering a revamp or extension 2014 could be the year to get the hammer out as the Home Renovation Tax Incentive (HRI) could save you as much as €4,050 on a spend of €30,000.

Hurrah for HRI. Budget 2014 was always going to hurt, but included without much fanfare was a real break for those planning to improve or frankly, finding themselves unable to move and having to reinvent what they already had. Essentially, a limited Vat rebate long enjoyed by self-builders in the UK, the Home Renovation Tax Incentive (HRI) could save you as much as €4,050 on a spend of €30,000 excluding Vat, offering a tax credit of 13.5%. Labour by a tax-compliant contractor at 13.5% Vat is also allowed. The claim isn’t confined to one single project and you can claim up to €30,000 even if spending a great deal more on a larger extension for example. You might be replacing a bathroom suite, dealing with failing windows and re-building a chimney between now and the end of 2015 — it’s all eligible up to €30,000 ex VAT.