Budget 2014 - Local Property Tax (LPT)

LOCAL PROPERTY TAX (LPT)

In relation to Local Property Tax, a half year charge applied in 2013. From 2014 onwards, a full year’s charge will apply.

Full details are available on www.revenue.ie

Home Renovation Incentive Scheme

The Budget provides for a Home Renovation Incentive Scheme which will run from 1 January 2014 to 31 December 2015. The Scheme provides for tax relief for homeowners by way of a tax credit at 13.5% of qualifying expenditure on repair, renovation or improvement work carried out on a principal private residence. Qualifying expenditure is expenditure subject to the 13.5% VAT rate. The work must cost a minimum of €5,000 (exclusive of VAT) which would attract a credit of €675. Where the cost of the work exceeds €30,000 (exclusive of VAT), a maximum credit of €4,050 will apply. The credit is given over the two years following the year in which the work is carried out.

The work must commence on or after 1 January 2014 and be carried out during 2014 or 2015. Homeowners must be LPT compliant in order to qualify under the Scheme while building contractors must be tax compliant in order to carry out works. The Scheme will be administered through Revenue’s online systems. Further information will be available on www.revenue.ie