477B Home renovation incentive

(1) In this section—

“contractor” means a person engaged by an individual to carry out qualifying work, and who is an accountable person under section 5 of the Value-Added Tax Consolidation Act 2010 and has been assigned a registration number under section 65 of that Act;

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“housing authority” has the same meaning as it has in the Housing (Miscellaneous Provisions) Act 1992;

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“PPS number”, in relation to an individual, means the individual’s personal public service number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;

“qualifying contractor” means a contractor who—

(a) complies with the obligations referred to in section 530G or 530H, as the case may be, or

(b) in the case of a contractor who is not a subcontractor to whom Chapter 2 of Part 18 applies, complies with the obligations referred to in paragraph (a), other than the obligations referred to in paragraphs (a) and (b) of subsection (1) of section 530G or 530H, as the case may be;

“qualifying expenditure”, in relation to an individual, means expenditure incurred by the individual on qualifying work carried out by a qualifying contractor on a qualifying residence;

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“qualifying residence”, in relation to an individual, means a residential premises situate in the State—

(a) which is owned by the individual and which is occupied by the individual as his or her only or main residence, or

(b) which has previously been occupied as a residence and has been acquired by the individual for the purposes of occupation by the individual as his or her only or main residence on completion of the qualifying work and which is so occupied upon completion;

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“qualifying residence”, in relation to an individual, means a residential premises situate in the State—

(a) which is owned by the individual and which is occupied by the individual as his or her only or main residence,

(b) which has previously been occupied as a residence and has been acquired by the individual for the purposes of occupation by the individual as his or her only or main residence on completion of the qualifying work and which is so occupied upon completion,

(c) which is owned by an individual and occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004, and where such registration requirements have been complied with ^[19]>by the individual, or^<[19][19]>by the individual,^<[19]

(d) which is owned by an individual and which is intended by the individual to be occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004, and where such registration requirements have been complied with by the individual and which is occupied by a tenant within 6 months of completion ^[20]>of the qualifying work;^<[20][20]>of the qualifying work, or^<[20]

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(e) which is owned by a housing authority and for which the housing authority is charging rent pursuant to section 58 of the Housing Act 1966 for the tenancy or occupation thereof by the individual and where the housing authority has given its prior written consent to the individual to qualifying work being carried out on the residential premises.

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“qualifying work” means any work of repair, renovation or improvement to which the rate of tax specified in section 46(1)(c) of the Value-Added Tax Consolidation Act 2010 applies, and which is carried out on a qualifying residence;

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“rental unit” means—

(a) part of a building used, or suitable for use, as a dwelling which is occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004, and where such registration requirements have been complied with, or

(b) part of a building used, or suitable for use, as a dwelling which is owned by an individual and which is intended by the individual to be occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004, and where such registration requirements have been complied with by the individual and which is occupied by a tenant within 6 months of completion of the qualifying work;

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“residential premises” means—

(a) a building or part of a building used, or suitable for use, as a dwelling, and

(b) land which the occupier of a building or part of a building used as a dwelling has for the occupier’s own occupation and enjoyment with that building or that part of a building as its garden or grounds of an ornamental nature;

“specified amount”, in relation to a payment in respect of qualifying expenditure, means 13.5 per cent of the amount of the payment on which value-added tax is charged, subject to a maximum amount of €4,050, provided that, where more than one payment is made in respect of qualifying expenditure, the aggregate of the specified amounts in respect of those payments shall not exceed €4,050;

“tax reference number”, means in the case of an individual, the individual’s PPS number or in the case of a company, the reference number stated on any return of income form or notice of assessment issued to that company by the Revenue Commissioners;

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‘tenancy’ has the same meaning as it has in the Residential Tenancies Act 2004;

‘tenant’ has the same meaning as it has in the Residential Tenancies Act 2004;”,

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“unique reference number” has the meaning given to it by subsection (4)(b);

“VAT registration number”, in relation to a person, means the registration number assigned to the person under section 65 of the Value-Added Tax Consolidation Act 2010.

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(1A) Where, as a result of the carrying out of qualifying work, a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) is converted into more than one rental unit, each such rental unit shall be a qualifying residence.

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(2) (a) This section applies to qualifying expenditure incurred on qualifying work carried out during the period from 25 October 2013 to 31 December 2015.

(b) Where payments in respect of qualifying work are made during the period from 25 October 2013 to 31 December 2013, those payments shall be deemed to have been made in the year of assessment 2014.

(c) Notwithstanding paragraph (a), where qualifying work, for which permission is required under the Planning and Development Act 2000, is carried out during the period from 1 January 2016 to 31 March 2016, then provided such permission is granted on or before 31 December 2015, that work shall be deemed to be carried out in the year of assessment 2015.

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(2) (a) This section applies to qualifying expenditure incurred on qualifying work carried out—

(i) during the period from 25 October 2013 to 31 December ^[15]>2015^{<[15][22]>[15]>}2016^{<[15]<[22][22]>}2018^<[22] in the case of a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ ^[23]>in subsection (1) refers, and^<[23][23]>in subsection (1) refers,^<[23]

(ii) during the period from 15 October 2014 to 31 December ^[15]>2015^{<[15][24]>[15]>}2016^{<[15]<[24][24]>}2018^<[24] in the case of a qualifying residence to which paragraph (c) or (d) of the definition of ‘qualifying residence’ ^[25]>in subsection (1) refers.^<[25][25]>in subsection (1) refers, and^<[25]

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(iii) during the period from 1 January 2017 to 31 December 2018 in the case of a qualifying residence to which paragraph (e) of the definition of ‘qualifying residence’ in subsection (1) refers.

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(b) Where, during the period from 25 October 2013 to 31 December 2013, qualifying work is carried out on a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1) refers, and where payments in respect of such work are made during that period, any such payments shall be deemed to have been made in the year of assessment 2014.

(c) Where, during the period from 15 October 2014 to 31 December 2014, qualifying work is carried out on a qualifying residence to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, and where payments in respect of such work are made during that period, any such payments shall be deemed to have been made in the year of assessment 2015.

(d) Notwithstanding paragraph (a), where qualifying work, for which permission is required under the Planning and Development Act 2000, is carried out during the period from 1 January ^[17]>2016^{<[17][28]>[17]>}2017^{<[17]<[28][28]>}2019^<[28] to 31 March ^[17]>2016^{<[17][28]>[17]>}2017^{<[17]<[28][28]>}2019^<[28], then provided such permission is granted on or before 31 December ^[16]>2015^{<[16][27]>[16]>}2016^{<[16]<[27][27]>}2018^<[27], that work shall be deemed to be carried out in the year of assessment ^[16]>2015^{<[16][27]>[16]>}2016^{<[16]<[27][27]>}2018^<[27].

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(3) (a) Subject to the provisions of this section, where an individual (in this section referred to as “the claimant”), on making a claim in that behalf, proves that in a year of assessment he or she has made a payment or payments to a qualifying contractor in respect of qualifying expenditure to which this section applies, the income tax to be charged on the claimant, other than in accordance with section 16(2), shall be reduced—

(i) in the case of the first subsequent year of assessment, by an amount which is the lesser of—

(I) 50 per cent of the specified amount of the payment or payments, and

(II) the amount which reduces the income tax of that year of assessment to nil,

and

(ii) in the case of the next subsequent year of assessment, by an amount which is the lesser of—

(I) that part of the specified amount not used in the year of assessment referred to in subparagraph (i), and

(II) the amount which reduces the income tax of that year of assessment to nil.

(b) Insofar as any part of the specified amount cannot be used under paragraph (a) (in this paragraph referred to as “excess relief”) due to the insufficiency of income tax charged on the claimant in the two years of assessment following the year of assessment in which the payment or payments referred to in paragraph (a) were made, the income tax for the year of assessment following those two years of assessment and so on for each succeeding year of assessment shall be reduced by the excess relief until the full amount of the excess relief has been used, provided that the amount of the excess relief used in any year of assessment shall not be greater than the amount which reduces the income tax charged on the claimant in that year of assessment to nil.

(c) The maximum amount of relief available under this section in respect of a qualifying residence shall not exceed €4,050.

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(ca) Where the qualifying work involves the conversion of a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) into more than one rental unit, paragraph (c) shall be read as if it applies to each of those units.

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(d) No claim shall be made under this section unless the payment, or where there is more than one payment the aggregate of those payments, in respect of qualifying expenditure made to a qualifying contractor or qualifying contractors is equal to or greater than €5,000.

(e) Where an individual engages a contractor to carry out qualifying work, it shall be the responsibility of that individual to be satisfied that the contractor is a qualifying contractor.

(4) (a) Subject to paragraph (c), a contractor shall, before commencing qualifying work under this section, provide to the Revenue Commissioners—

(i) the contractor’s name,

(ii) the contractor’s tax reference number and VAT registration number,

(iii) the unique identification number assigned in accordance with section 27 of the Finance (Local Property Tax) Act 2012 to the property on which the qualifying work is to be carried out,

(iv) the name of the claimant,

(v) the address of the property at which the work will be carried out,

(vi) a description of the work to be carried out,

(vii) the estimated cost of the work to be carried out, separately identifying the amount of value-added tax, ^[7]>and^<[7]

(viii) the estimated duration of the work, including the estimated start date and ^[8]>estimated end date.^<[8][8]>estimated end date,^<[8]

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(ix) confirmation as to whether or not the property referred to in subparagraph (iii) is a residential premises to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, and

(x) in the case of a property to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, where such property is, as a result of the carrying out of the qualifying work, to be converted into more than one rental unit, the number of such rental units.

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(b) On receipt of the information referred to in paragraph (a), the Revenue Commissioners shall—

(i) notify the contractor, as the case may be, that—

(I) the contractor is a qualifying contractor for the purposes of this section and such notification shall contain a number for the work (in this section referred to as the “unique reference number”), or

(II) that the contractor is not a qualifying contractor for the purposes of this section,

and

(ii) where the contractor is a qualifying contractor, notify the individual concerned accordingly and the notification shall stipulate the unique reference number for the work.

(c) Where a qualifying contractor has commenced qualifying work on or after 25 October 2013 but before the electronic systems referred to in subsection (10) are made available by the Revenue Commissioners, the contractor shall provide to the Revenue Commissioners the information specified in paragraph (a) within 28 days of such electronic systems being made available.

(5) (a) Upon receipt of payment from the individual concerned in respect of qualifying work, but not later than 10 working days following receipt of such payment, the contractor shall—

(i) provide to the Revenue Commissioners the following information:

(I) the contractor’s name;

(II) the contractor’s tax registration number and VAT registration number;

(III) the unique reference number for the work;

(IV) details of the amount of the payment, separately identifying the amount of value-added tax;

(V) the name of the individual from whom the payment was received;

(VI) the date of the payment,

and

(ii) provide to the individual a statement showing the amount of the payment separately identifying the amount of value-added tax.

(b) Where a qualifying contractor receives payment from the individual in respect of qualifying work to which this section applies on or after 25 October 2013 and before the electronic systems referred to in subsection (10) are made available by the Revenue Commissioners, that contractor shall provide to the Revenue Commissioners the information specified in paragraph (a) within 28 days of such electronic systems being made available.

(6) On making a claim under this section, the claimant shall provide to the Revenue Commissioners—

(a) the following information:

(i) his or her name and tax reference number;

(ii) the unique reference number for the work;

(iii) the unique identification number assigned in accordance with section 27 of the Finance (Local Property Tax) Act 2012 to the property on which the qualifying work was carried out;

(iv) details of any sum referred to in paragraph (a) or (b) ^[10]>of subsection (7),^<[10][10]>of subsection (7);^<[10]

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(v) confirmation as to whether or not the property referred to in subparagraph (iii) is a residential premises to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers;

(vi) in the case of a property to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, where such property was, as a result of the carrying out of qualifying work, converted into more than one rental unit, the number of such rental units and the address of each rental unit,

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and

(b) a declaration (unless the contrary is the case) in respect of each such payment that—

(i) the amount of the payment advised to the Revenue Commissioners by the qualifying contractor under subsection (5)(a)(i)(IV) accords with the amount of the payment made by the claimant to that contractor,

(ii) the date of the payment advised to the Revenue Commissioners by the qualifying contractor under subsection (5)(a)(i)(V) is correct,

(iii) the work in respect of which payment was made to the qualifying contractor was qualifying work ^[12]>carried out on the claimant’s qualifying residence,^<[12][12]>carried out on a qualifying residence of the claimant,^<[12]

(iv) the work in respect of which payment was made to the qualifying contractor has been completed,

(v) the contractor has received full payment from the claimant in respect of the work, and

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(vi) the property on which the qualifying work was carried out was occupied by the individual as his or her only or main residence on completion of the work.

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(vi) the property on which the qualifying work was carried out was—

(I) in the case of a residential premises referred to in paragraph ^[29]>(a) or (b)^<[29][29]>(a), (b) or (e)^<[29] of the definition of ‘qualifying residence’ in subsection (1), occupied by the individual as his or her only or main residence on completion of the work, or

(II) in the case of a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1), occupied, within 6 months of completion of the qualifying work, by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 and such registration requirements were complied with, and

(III) in the case of each rental unit referred to in paragraph (a) (vi), occupied, within 6 months of completion of the qualifying work, by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 and such registration requirements have been complied with.

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(7) Where a claimant has received or will receive, in respect of, or by reference to, qualifying work, a sum directly or indirectly—

(a) from the State or any public body or local authority, or

(b) under any contract of insurance or by way of compensation or otherwise,

then, for the purposes of subsection (3)(a), the amount of any payment or payments, as specified in the information provided to the Revenue Commissioners under subsection (5), made in respect of qualifying expenditure on that qualifying work shall be reduced—

(i) in the case of paragraph (a), by an amount equal to 3 times the sum received or receivable, and

(ii) in the case of paragraph (b), by an amount equal to the sum received or receivable.

(8) (a) Relief shall not be given under this section where the requirements of the Finance (Local Property Tax) Act 2012, in relation to the making of returns and the payment of local property tax—

(i) have not been complied with in respect of the qualifying residence, or

(ii) have not been complied with by a claimant in respect of any relevant residential property (other than the qualifying residence) in relation to which the claimant is a liable person.

(b) In this subsection “relevant residential property” and “liable person” have the same meanings respectively as in the Finance (Local Property Tax) Act 2012.

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(c) Subparagraph (i) of paragraph (a) shall not apply in the case of a residential premises referred to in paragraph (e) of the definition of ‘qualifying residence’ in subsection (1).

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(9) For the purposes of this section—

(a) in the case of a claimant assessed to tax for a year of assessment in accordance with section 1017, any payment in respect of qualifying expenditure to a qualifying contractor made by the claimant’s spouse, in respect of which the claimant’s spouse would have been entitled to relief under this section if that spouse were assessed to tax for the year of assessment in accordance with section 1016 (apart from subsection (2) of that section), shall be deemed to have been made by the claimant, and

(b) in the case of a nominated civil partner assessed to tax for a year of assessment in accordance with section 1031C, any payment in respect of qualifying expenditure to a qualifying contractor made by the other civil partner, in respect of which the other civil partner would have been entitled to relief under this section if the other civil partner were assessed to tax for the year of assessment in accordance with section 1031B (apart from subsection (2) of that section), shall be deemed to have been made by the nominated civil partner.

(10) Any claim, notification, information or declaration required by this section shall be given by electronic means and through such electronic systems as the Revenue Commissioners may make available for the time being for any such purpose, and the relevant provisions of Chapter 6 of Part 38 shall apply.

(11) Where qualifying expenditure, in relation to qualifying work on a qualifying residence, is incurred by 2 or more claimants, then, except where subsection (9) applies, for the purposes of apportioning the specified amount, each claimant shall be entitled to an amount which bears the same proportion to the specified amount as the qualifying expenditure incurred by that claimant on the qualifying residence bears to the total qualifying expenditure incurred on that residence.

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(12) Expenditure in respect of which a claimant is entitled to relief under this section shall not include any expenditure in respect of which that claimant is entitled to a deduction, relief or allowance under any other provision of the Tax Acts or the Value-Added Tax Consolidation Act 2010.

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(12) In the case of a qualifying residence to which paragraph ^[31]>(a) or (b)^<[31][31]>(a), (b) or (e)^<[31] of the definition of ‘qualifying residence’ in subsection (1) refers, expenditure in respect of which a claimant is entitled to relief under this section shall not include any expenditure in respect of which that claimant is entitled to a deduction, relief or allowance under any other provision of the Tax Acts or the Value-Added Tax Consolidation Act 2010.

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(13) Anything required to be done by or under this section by the Revenue Commissioners, other than the making of regulations, may be done by any Revenue officer.

(14) (a) The Revenue Commissioners may make regulations for the purposes of this section and those regulations may—

(i) specify the manner in which contractors shall provide to the Revenue Commissioners the information required under subsections (4) and (5),

(ii) specify the manner in which a claimant shall provide to the Revenue Commissioners the information and declaration required under subsection (6),

(iii) specify the manner in which the Revenue Commissioners shall issue notifications under subsection (4)(b)(ii), and

(iv) provide for such other matters relating to the information required under subsections (4)(a) and (5)(a) and to the information and declaration required under subsection (6) as are considered necessary and appropriate by the Revenue Commissioners for the purposes of this section and as may be specified in the regulations.

(b) Regulations made under this section may contain such incidental, supplemental or consequential provisions as appear to the Revenue Commissioners to be necessary or expedient—

(i) to enable persons to fulfil their obligations under this section or under regulations made under this section, or

(ii) to give effect to the proper implementation and efficient operation of the provisions of this section or regulations made under this section.

(c) Regulations made under this section shall be laid before Dáil Éreann as soon as may be after they are made and, if a resolution annulling those regulations is passed by Dáil Éreann within the next 21 days on which Dáil Éreann has sat after the regulations are laid before it, the regulations shall be annulled accordingly, but without prejudice to the validity of anything previously done under them.