Finance Act 2014

• Permanent Page URL

Amendment of section 477B of Principal Act (home renovation incentive)

13. Section 477B of the Principal Act is amended—

(a) in subsection (1) —

(i) by substituting the following for the definition of “qualifying residence”:

“‘qualifying residence’, in relation to an individual, means a residential premises situate in the State—

(a) which is owned by the individual and which is occupied by the individual as his or her only or main residence,

(b) which has previously been occupied as a residence and has been acquired by the individual for the purposes of occupation by the individual as his or her only or main residence on completion of the qualifying work and which is so occupied upon completion,

(c) which is owned by an individual and occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual, or

(d) which is owned by an individual and which is intended by the individual to be occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual and which is occupied by a tenant within 6 months of completion of the qualifying work;”,

and

(ii) by inserting the following definitions:

“‘rental unit’ means—

(a) part of a building used, or suitable for use, as a dwelling which is occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with, or

(b) part of a building used, or suitable for use, as a dwelling which is owned by an individual and which is intended by the individual to be occupied by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 , and where such registration requirements have been complied with by the individual and which is occupied by a tenant within 6 months of completion of the qualifying work;

‘tenancy’ has the same meaning as it has in the Residential Tenancies Act 2004 ;

‘tenant’ has the same meaning as it has in the Residential Tenancies Act 2004 ;”,

(b) by inserting the following subsection after subsection (1):

“(1A) Where, as a result of the carrying out of qualifying work, a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) is converted into more than one rental unit, each such rental unit shall be a qualifying residence.”,

(c) by substituting the following subsection for subsection (2):

“(2) (a) This section applies to qualifying expenditure incurred on qualifying work carried out—

(i) during the period from 25 October 2013 to 31 December 2015 in the case of a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1) refers, and

(ii) during the period from 15 October 2014 to 31 December 2015 in the case of a qualifying residence to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers.

(b) Where, during the period from 25 October 2013 to 31 December 2013, qualifying work is carried out on a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1) refers, and where payments in respect of such work are made during that period, any such payments shall be deemed to have been made in the year of assessment 2014.

(c) Where, during the period from 15 October 2014 to 31 December 2014, qualifying work is carried out on a qualifying residence to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, and where payments in respect of such work are made during that period, any such payments shall be deemed to have been made in the year of assessment 2015.

(d) Notwithstanding paragraph (a), where qualifying work, for which permission is required under the Planning and Development Act 2000 , is carried out during the period from 1 January 2016 to 31 March 2016, then provided such permission is granted on or before 31 December 2015, that work shall be deemed to be carried out in the year of assessment 2015.”,

(d) in subsection (3) by inserting the following paragraph after paragraph (c):

“(ca) Where the qualifying work involves the conversion of a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) into more than one rental unit, paragraph (c) shall be read as if it applies to each of those units.”,

(e) in subsection (4) —

(i) in paragraph (a)(vii) by deleting “and”,

(ii) in paragraph (a)(viii) by substituting “estimated end date,” for “estimated end date.”, and

(iii) by inserting the following subparagraphs after subparagraph (viii) of paragraph (a):

“(ix) confirmation as to whether or not the property referred to in subparagraph (iii) is a residential premises to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, and

(x) in the case of a property to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, where such property is, as a result of the carrying out of the qualifying work, to be converted into more than one rental unit, the number of such rental units.”,

(f) in subsection (6) —

(i) in paragraph (a)(iv) by substituting “of subsection (7);” for “of subsection (7),”,

(ii) by inserting the following subparagraphs after subparagraph (iv) of paragraph (a):

“(v) confirmation as to whether or not the property referred to in subparagraph (iii) is a residential premises to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers;

(vi) in the case of a property to which paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1) refers, where such property was, as a result of the carrying out of qualifying work, converted into more than one rental unit, the number of such rental units and the address of each rental unit,”,

(iii) in paragraph (b)(iii) by substituting “carried out on a qualifying residence of the claimant,” for “carried out on the claimant’s qualifying residence,”, and

(iv) by substituting the following subparagraph for subparagraph (vi) of paragraph (b):

“(vi) the property on which the qualifying work was carried out was—

(I) in the case of a residential premises referred to in paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1), occupied by the individual as his or her only or main residence on completion of the work, or

(II) in the case of a residential premises referred to in paragraph (c) or (d) of the definition of ‘qualifying residence’ in subsection (1), occupied, within 6 months of completion of the qualifying work, by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 and such registration requirements were complied with, and

(III) in the case of each rental unit referred to in paragraph (a)(vi), occupied, within 6 months of completion of the qualifying work, by a tenant under a tenancy for which registration is required under Part 7 of the Residential Tenancies Act 2004 and such registration requirements have been complied with.”,

and

(g) by substituting the following subsection for subsection (12):

“(12) In the case of a qualifying residence to which paragraph (a) or (b) of the definition of ‘qualifying residence’ in subsection (1) refers, expenditure in respect of which a claimant is entitled to relief under this section shall not include any expenditure in respect of which that claimant is entitled to a deduction, relief or allowance under any other provision of the Tax Acts or the Value-Added Tax Consolidation Act 2010 .”.