Home Renovation Incentive (HRI) - section 477B of the Taxes Consolidation Act 1997

Section 13 of Finance Act 2014 extended the Home Renovation Incentive (HRI) under section 477B of the Taxes Consolidation Act 1997 to include rental properties. The section now provides for tax relief for homeowners and landlords by way of an income tax credit equal to 13.5% of qualifying expenditure incurred on repair, renovation or improvement work carried out on a homeowner’s only or main residence or on a landlord’s rental properties.

The HRI tax credit can be claimed through HRI online the year after the qualifying work is carried out and paid for. Qualifying work carried out and paid for by homeowners between 25 October 2013 and 31 December 2013 will be treated as if it was paid for in 2014 for tax credit purposes. Claims for 2014 can now be made by homeowners through HRI online.

Qualifying work carried out and paid for by landlords between 15 October 2014 and 31 December 2014 will be treated as if it was paid for in 2015 for tax credit purposes. Claims for 2015 can be made by landlords through HRI online from January 2016.

Tax and Duty manual Part 15-01-43 has been updated to reflect the extension of HRI as provided for in Finance Act 2014.

02 February 2015