Improve your home today with a Castlebar Credit Union loan

At the moment for most people buying a new property or trading up is not an option. However given the added benefit of the Home Renovation Incentive Scheme coupled with a home improvement loan from Castlebar Credit Union your dream home could now be the one you are already in.

The Home Renovation Incentive now applies for any jobs carried out from Friday October 25, 2013 up to December 31 2015. The scheme provides for a tax credit for homeowners on repair, renovation, or improvement work to their principal private residence. The qualifying works must cost a minimum of €4,405 (before VAT ), which will attract the minimum tax credit of €595. Where the cost of works exceeds €30,000 (before VAT ), a maximum tax credit of €4,050 will apply. The tax credit will be calculated at 13.5 per cent. Works that qualify include extensions, garages, attic conversions, supply and fitting of kitchens, bathrooms, and built-in wardrobes, window fitting, plumbing, tiling, rewiring, and plastering. Building contractors who are VAT registered in Ireland and tax compliant, are eligible to carry out work under the incentive. Owner occupiers of a principal private residence who are tax compliant are eligible. Specifically, the homeowner’s Local Property Tax must be up to date. See below for a few examples of the type of savings you could make.

Example one

Ann has paid a VAT registered and tax compliant electrician €5,000 (before VAT ) for rewiring her home. Her tax credit is €5,000 x 13.5 per cent = €675. The work is done and paid for in 2014. Ann will be entitled to a tax credit of €337.50 in 2015 and a further tax credit of €337.50 in 2016.

Example two

Jim engages a VAT registered and tax compliant building contractor to build an extension at the cost of €30,000 (before VAT ). The work is all done and paid for in 2014. The tax credit is €30,000 x 13.5 per cent = €4,050. Jim will be entitled to a tax credit of €2,025 in 2015 and a further tax credit of €2,025 in 2016.

For more information on The Home Renovation Incentive Scheme go to www.revenue.ie

Example: Cost of finance

For a €10,000, five year variable interest rate loan, with monthly repayments of €217.72 at an interest rate of 10.5 per cent (11.05 per cent APR ); the total amount payable by the member will be €12,838.59.

For further information contact the loan team on 094 9022969 Ext or email [email protected] or complete a loan application online. You can also use the loan calculator on www.castlebarcu.ie

 

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