To qualify for the HRI as an owner-occupier, the work must be carried out on your principal private residence. As noted above, landlords can qualify in respect of work done on their rental properties, which must be registered with the Residential Tenancies Board.
You must be paying income tax - whether under PAYE or self-assessment - to avail of the HRI.
If you are a homeowner or a landlord, you must be up to date with your obligations under the Local Property Tax.
If you are a local authority tenant, you must get prior written consent from the local authority to carry out the works.
Any contractor you use must be registered for Value Added Tax (VAT) in Ireland and be tax-compliant. Revenue has published FAQs for contractors. If several contractors, such as a builder, a plumber and an electrician, carry out qualifying work on your home or rental property, you can combine the cost of the works to make up the minimum qualifying amount – see 'Rates' below.
The type of work that qualifies for the HRI is repair, renovation or improvement work that is subject to VAT at 13.5%. This includes extensions, garages and attic conversions; the supply and fitting of kitchens, bathrooms and built-in wardrobes; fitting of windows; garden landscaping; plumbing, tiling, rewiring, plastering and painting.
If you are having your septic tank repaired or replaced, or are installing a radon gas mitigation solution, these types of work also qualify for the HRI. Work on driveways and on rainwater harvesting systems can also qualify. There are more examples of qualifying work on revenue.ie. If you are unsure about whether your works will qualify, contact your Revenue office – see 'Where to apply' below.
Work that is subject to VAT at 23% (such as architect’s fees) is not covered. Neither are items such as furniture, white goods or carpets.
Homeowners: In general, the work must be carried out and paid for between 25 October 2013 and 31 December 2018. Qualifying work between 25 October 2013 and 31 December 2013 is treated as if it was carried out and paid for in 2014.
Landlords: In general, the work must be carried out and paid for between 15 October 2014 and 31 December 2018. Qualifying work between 15 October 2014 and 31 December 2014 is treated as if it was carried out and paid for in 2015.
Local authority tenants: The work must be carried out and paid for between 1 January 2017 and 31 December 2018. Prior written consent is required from the local authority to carry out the works.
Revenue has published general information about the HRI and specific information for homeowners and landlords, as well as a guide for homeowners and landlords (pdf) and a guide for contractors (pdf). There is also detailed information in Revenue's Tax and Duty Manual (pdf).
Information will be available shortly on how local authority tenants can claim HRI relief. In the meantime, local authority tenants can contact their Revenue office for further information.