Home Renovation Incentive Scheme: Unlock Huge Savings on Your Property Makeover

Farnan Culkin
March 12, 2023

Are you planning a home renovation in Ireland but unsure about the financial assistance available? Discover how the Home Renovation Incentive Scheme can help you save on your project!

At BuildPro, we understand the importance of creating your dream home while keeping your budget in check. That's why we've compiled this comprehensive guide to the HRI Scheme in Ireland, providing you with all the information you need to make the most of this valuable opportunity.

What is the Home Renovation Incentive Scheme?

The Home Renovation Incentive (HRI) Scheme is an Irish government initiative to encourage homeowners to invest in home improvement and renovation projects. Launched in 2013, the scheme provides tax relief for homeowners undertaking qualifying renovation projects. The goal is to stimulate the construction industry, create jobs, and promote energy efficiency in residential properties.

How Does the Home Renovation Incentive Scheme Work?

The HRI Scheme provides tax relief for homeowners in the form of an Income Tax credit. This credit equals 13.5% of the qualifying expenditure on eligible renovation works, up to a maximum expenditure of €30,000. The tax credit is then distributed evenly over two years following the completion of the project.

To qualify for the HRI Scheme, the work must be carried out by a tax-compliant contractor registered for Value Added Tax (VAT) in Ireland. The project must also improve the homeowner's main residence or rental property, provided the property has been vacant for at least 12 months before the work commences.

Home Renovation Projects Covered by the HRI Scheme

To give you a better understanding of the types of projects that can qualify for the HRI Scheme, we've compiled a list of common renovations eligible for the tax credit:

  • Home extensions: Adding extra living space, such as a new bedroom or bathroom.
  • Window and door replacements: Upgrading to energy-efficient windows and doors.
  • Insulation improvements: Enhancing the insulation of your home, including walls, roof, and floors.
  • Plumbing and electrical upgrades: Modernizing your home's plumbing and electrical systems.
  • Kitchen and bathroom renovations: Updating your kitchen or bathroom, including new fixtures and fittings.
  • Painting and decorating: Interior and exterior painting, wallpapering, and other decorative finishes.

Remember that this is not an exhaustive list, and many other renovation projects may also qualify for the HRI Scheme. BuildPro's consultants can help you determine whether your project is eligible for the tax credit.

What Are the Eligibility Criteria for the HRI Scheme?

To be eligible for the HRI Scheme, you must meet the following criteria:

  • Homeowner or landlord: You must be a homeowner or landlord in Ireland, and the property must be your primary residence or a rental property.
  • Qualifying work: The renovation work must qualify under the HRI Scheme guidelines. This includes repairs, extensions, window replacements, insulation, and more.
  • Registered contractor: The contractor carrying out the work must be registered with the Revenue's Home Renovation Incentive online system.
  • Minimum spend: The total expenditure on qualifying work must be at least €4,405 (before VAT) and not exceed €30,000 (before VAT).
  • Tax compliance: Both the homeowner and the contractor must be fully tax compliant, with up-to-date tax clearance certificates.

How to Apply for the Home Renovation Incentive Scheme

Applying for the HRI scheme involves a few essential steps, which we've outlined below:

  • Verify the eligibility of your project: Ensure that your planned renovation meets the home renovation incentive scheme criteria.
  • Hire a qualifying contractor: To be eligible for the HRI scheme, you must work with a contractor registered for the Home Renovation Incentive and Value-Added Tax (VAT).
  • Review your contractor's HRI tax credit claim: Your contractor will enter the details of your project into the HRI online system, and you must confirm this information to validate your claim.
  • File your Income Tax or Corporation Tax return: To claim the HRI tax credit, you must file your tax return for the relevant year.
  • Receive the tax credit: If your application is successful, you will receive the tax credit over two years following the year of the renovation work.

How Can BuildPro Help You Navigate the Home Renovation Incentive Scheme?

With numerous requirements and conditions, the HRI Scheme can be overwhelming for homeowners seeking its benefits. That's where BuildPro comes in, offering expert consulting services to help you navigate the process and maximise your savings.

Comprehensive Assessment of Your Renovation Project

BuildPro's team of professionals will assess your renovation project, ensuring it meets the HRI Scheme's eligibility criteria. From analysing the scope of work to verifying contractor registration, we'll guide you through every step, helping you avoid pitfalls and ensuring a smooth application process.

Maximising Your Savings through Expert Guidance

Our consultants at BuildPro are well-versed in the intricacies of the HRI Scheme. We'll help you optimise your project to maximise your tax credit, ensuring you're not leaving any money on the table. Additionally, we'll assist you in identifying any additional grants or incentives that may be available for your specific renovation project, further increasing your savings.

Hassle-free Application and Documentation

Applying for the HRI Scheme can be daunting, requiring numerous forms and documentation. BuildPro's experts will simplify the process, ensuring your application is complete and accurate and minimising delays or issues. We'll also help you maintain proper records of your project expenditures, making it easier to claim your tax credit.

Ongoing Support and Assistance

BuildPro's commitment to your renovation project doesn't end with the HRI Scheme application. We'll continue to offer support and assistance throughout the renovation process, addressing any concerns or questions you may have. Our team will ensure that your project stays on track and adheres to the HRI Scheme requirements, guaranteeing that your investment yields the maximum benefits possible.

Choose BuildPro for Expert Home Renovation Consultation

At BuildPro, we pride ourselves on helping homeowners navigate the complexities of home renovation projects. Our team of experienced consultants is here to guide you through the Home Renovation Incentive Scheme application process, explore financing options, and provide expert advice tailored to your unique needs.

Don't leave your dream renovation to chance; contact BuildPro today and take the first step toward creating your ideal home!

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Frequently Asked Questions

What is the tax relief home renovation incentive?

The tax relief offered by the Home Renovation Incentive Scheme is an Income Tax credit equivalent to 13.5% of the total qualifying expenditure on eligible renovation works, up to a maximum expenditure of €30,000.

How to finance a house renovation?

Several financing options for house renovations include personal loans, home improvement loans, credit union loans, home equity loans or lines of credit, and mortgage refinancing. Consult with a professional like BuildPro to determine the best option for your needs.

Can you reclaim VAT on house renovations?

The Home Renovation Incentive Scheme provides tax relief through an Income Tax credit, which includes the VAT paid on eligible renovation works. However, you cannot directly reclaim the VAT on house renovations outside the HRI Scheme.

Is renovation cheaper than buying a house?

The cost comparison between renovation and buying a new house depends on various factors, such as the scope of the renovation, the property's condition, and the local housing market. In some cases, renovation can be more cost-effective, while purchasing a new house may be a better option in others. Consult with a professional like BuildPro to help you make an informed decision.

Is renovation an investment?

Yes, home renovations can be considered an investment. They can improve your home's functionality and aesthetics and potentially increase its market value. However, it is essential to carefully plan and execute renovations to maximise their return on investment.

How long does the Home Renovation Incentive Scheme last?

The Home Renovation Incentive Scheme started in 2013 and has had various extensions. However, the duration and any changes or extensions would depend on the government's decisions. It's crucial to stay updated with the latest information on the scheme or consult professionals like BuildPro for the most recent details.

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*FYI, parts of this blog post were drafted by artificial technlogy. But rest assured, it's been thoroughly researched, edited, reviewed and me & my team.
Farnan Culkin

Farnan Culkin is a seasoned expert in the home improvement industry and the proud founder of BuildPro. His passion for home renovation and home extensions has led him to create a platform that educates homeowners, helping them transform their Irish homes into their dream dwellings.