Housing Tax Credits & Reliefs

Housing Tax Credits & Reliefs

Housing Tax Credits & Reliefs

Home Renovation Incentive

The Home Renovation Incentive (HRI) provides an income tax credit to homeowners and landlords who carry out qualifying renovation and improvement works. It was introduced for homeowners in October 2013 and was extended to landlords in October 2014. It is payable over the 2 years following the year in which the work is carried out. The credit is calculated at a rate of 13.5% on all qualifying expenditure over €4,405 (before VAT) up to a maximum of €30,000 (before VAT). Qualifying works include extensions and renovations to the home, window-fitting, plumbing, tiling and plastering. Builders must be fully tax-compliant and all expenditure and relief claims must be registered electronically with the Revenue Commissioners.

Tax relief for tenants

If you live in private rented accommodation and pay income tax, you may be eligible for tax relief on part of your rent. More information is available in our document on tax issues for tenants. This scheme only applies to people who were renting on 7 December 2010.

Tax relief on mortgage interest

Mortgage interest relief is a tax relief based on the amount of qualifying mortgage interest that you pay in a given tax year for your principal private residence (your home). A tax year means the period from 1 January to 31 December. Mortgages taken out after 31 December 2012 no longer qualify for mortgage interest relief. Mortgage interest relief will be abolished entirely after 31 December 2017.

You can get more information in our document about mortgage interest tax relief.

Rent a Room Relief

If you rent a room in your home to a private tenant, the rental income may be exempt from income tax. To qualify, the rental income must not exceed €12,000 (this was €10,000 in 2014 and previous years). The relief applies only to residential tenancies, not to short-term guest arrangements. You are not eligible for Rent a Room relief if you are renting the room to a son or daughter. Find out more in our document about Rent a Room Relief.

Tax when transferring the ownership of your home

When ownership of a property is transferred, the financial gains are usually liable to tax but some exemptions and reliefs apply.

For instance, when you sell a property, any profit you make over the amount that you paid for it would usually be liable for Capital Gains Tax. There is however an exemption if the property is the main residence where you live. See Revenue leaflet CGT2 (pdf) for an introduction to Capital Gains Tax or see the more detailed Guide to Capital Gains Tax (pdf).

If you receive property as a gift or inheritance, you may have to pay Capital Acquisitions Tax. A number of reliefs and exemptions apply including transfers between spouses or civil partners or the receipt of a house that has been your main residence.

Stamp duty

Stamp duty is a tax that may be payable when ownership of a property is transferred. The current rate is 1% for residential property valued up to €1 million and 2% on the balance. You can get further information on stamp duty on property.

Service charges

Tax relief was available if you pay service charges for refuse collection, sewage disposal or domestic water supplies. This tax relief ended from January 2012 but you can claim for previous years. You can get more information on tax relief on domestic service charges.

Where to apply

Lo-call telephone numbers for Revenue regional offices are available here. You can find more detailed contact details for your region here. Remember to have your PPS Number to hand in any dealings with Revenue.

You can also claim tax credits online.

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