Ireland: Home Renovation Tax Break Kicks In Tomorrow
24 October 2013
Posted by: Author: Fionnan Sheahan
Author: Fionnan Sheahan (Irish Independent)
Homeowners will be able to do up their home for
Christmas and still get the new Budget tax break worth up to €4,000.
Finance Minister Michael Noonan
is fast-tracking the introduction of his home-renovation scheme, after
builders and suppliers reported jobs being cancelled as the tax break
wasn't due to come in until next year.
He will ensure that the Home Renovation Incentive applies for any jobs carried out from tomorrow.
Works that will qualify for a VAT rebate include extensions, renovations, windows, plumbing, tiling and plastering.
Home Renovation Incentive will provide an income tax credit on the VAT
paid to homeowners carrying out work on their home in the next two
years. The measure was first revealed in the Irish Independent and
announced in Budget 2014.
The credit will be calculated at 13.5pc on spending between €5,000 and €30,000. The maximum level of tax relief is €4,000.
scheme will support fully tax-compliant builders as the spending and
relief will have to be registered with the Revenue Commissioners.
The Department of Finance was contacted by builders, suppliers and homeowners about jobs being deferred until the New Year because of the incentive.
"The concern really was from the industry that between now and Christmas there would be no work done," a source said.
Noonan will publish the Finance Bill 2013 this afternoon, the
legislation required to implement many of the measures announced in the
Construction Industry Federation (CIF) director-general Tom Parlon welcomed the Government's decision.
He said the CIF was getting numerous queries about how the scheme would operate.
Mr Parlon said he had made representations to Mr Noonan and junior minister Brian Hayes
about the unforeseen impact of the delayed start to the scheme. "It's a
common sense response and it's good and it shows they are getting clued
in," he said.
Mr Noonan's scheme is designed to tackle cowboy
builders. The payback will only be available for homeowners who hire
legitimate builders who are registered for tax.
This article first appeared in independent.ie.