Property

Home Renovation Incentive Scheme

  • The Home Renovation Incentive Scheme was introduced in Budget 2014 to provide relief to homeowners who carry out certain renovation and improvement works to their principal private residence. The relief consists of an income tax credit at a rate of 13.5% on qualifying expenditure carried out by qualifying contractors (subject to a minimum spend of €5,000 and a maximum spend of €30,000), split over 2 years following the year in which the work is carried out. The relief was extended in last year’s Budget to apply to landlords who are liable to income tax. 
  • Budget 2016 has extended the availability of the relief until 31 December 2016.

Local Property Tax (LPT)

  • The Minister announced that he will be making a proposal to Government to postpone the revaluation date for the LPT from 2016 to 2019. The postponement of the revaluation date means that home owners will not be faced with significant increases in their LPT in 2017.
  • The Minister also stated that the recommendations made by Dr Thornhill for continued exemption for properties significantly affected by pyrite have been accepted. The LPT exemption will continue to remain in place for those properties that fall into certain damage categories and meet certain testing criteria.

Increasing the Supply of Residential Housing

  • The Minister stated that there is a requirement for a minimum of 10,000 new units per annum in the Dublin area but that the market only delivered 3,300 units in the last year. Following a review of residential sites under its control, NAMA is aiming to deliver a target of 20,000 residential units before the end of 2020, and will work with developers in doing so.

 

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