Q I have recently bought a small cottage that I intend to renovate and rent out. It was previously lived in as the family home of the vendor. Do these works qualify for the home renovation tax incentive as extended to landlords in the 2014 Budget?
A Yes, these works qualify for the home renovation tax incentive scheme as amended in Budget 2014. As the home owner you will be required to have a tenant occupy the property within six months of completing the qualifying works. You will also be required to register the tenancy with the Private Residential Tenancies Board (PRTB).
In order to be eligible for the tax credit under the scheme, the qualifying works must cost between €4,405 (excluding VAT) and €30,000 (excluding VAT). The tax credit on qualifying works of €5,000 would be €675 whereas a tax credit of €3,240 would be applicable if the works cost €24,000 excluding VAT. The maximum tax credit of €4,050 is achievable on qualifying works in excess of €30,000 excluding VAT. Also the scheme is limited to works which attract a 13.5 per cent VAT rate.
Landlords can only avail of the tax relief if the works are undertaken by a registered and tax compliant building contractor. Qualifying works have to be undertaken between October 25th, 2013 and December 31st, 2015 (works outside these dates are ineligible).
The scheme is administered through the Revenue and the application process is through the Home Renovation Incentive online system, however the landlords’ online application system is not “live” yet and therefore landlords should retain all information regarding any qualifying works such as quotes, Relevant Contracts Tax information, invoices and payments, until the online application system is up and running on the Revenues website.
Further information can be found on the SCSI website at scsi.ie.
Kevin Brady is a member of the Society of Chartered Surveyors Ireland (SCSI) Quantity Surveying Professional Group
Real cost of pylons
Q As part of Grid West, Eirgrid are planning to erect pylons on my land. I fear that the proposed pylons will devalue my farm land and therefore I intend to seek compensation. What is involved in this process? Any advice would be greatly appreciated.
A The Acquiring Authority (Eirgrid) must serve notice of their intention to acquire a wayleave through your farm followed, in due course, by confirmation that it has been approved by An Bord Pleanala. Once approval is received, Eirgrid have 18 months in which to serve a Notice to Treat. The date of that Notice fixes the date for assessment of value.
In response, the respondent farmer serves a claim outlining his/her title and setting out their opinion of the correct amount of compensation payable and the reasons why. The Acquiring Authority will appoint a valuer to negotiate with the farmer or his representative. The farmer should appoint his/her own valuer, preferably before making the claim, to advise him/her on the correct amount and to negotiate on his/her behalf. The valuer’s fees should be paid by Eirgrid as part of the compensation package. The farmer should not have to pay the valuer anything over and above that fee.
The Authority will also be responsible for the farmer’s reasonable legal costs, incurred in dealing with the transfer of title. If agreement cannot be reached, the matter can be brought before the State Arbitrator. His award is final with no appeal except on a point of law.
It should be noted that, in the event of the award being a sum less than that offered by the Authority, the farmer may well be made responsible for both sides’ costs of the hearing, including his/her own solicitor, barrister and valuer. The solution to this is for the farmer to be reasonable in his/her expectations. Your solicitor or valuer will advise you on any other matters that may arise.
Paul Good is a member of the Society of Chartered Surveyors Ireland (SCSI) Rural Agency Professional Group
Damp dilemma
Q I live in a very old converted apartment complex, which has an exposed stone external wall. I have had water ingress through the external wall, and the management company undertook works in the form of re-pointing the stone joints and capping. They have now advised that I should replace the "unsuitable cementitious" plaster finish internally with a lime render. They say that this will allow the wall to "breathe" and will further alleviate problems associated with damp. Given that the management company is required to deal with damp, is it reasonable for them to ask that I fund the replacement of the internal plaster finish? I know the MUD's act places responsibility for the external walls with the management company; however does this extend to the internal finish?
A The Multi-Unit Developments Act 2011 (MUD Act 2011) Section (1)(a) indeed notes the external walls as a common area. This Section also continues to identify a relevant part as meaning “in relation to a unit, those parts of the common areas of a multi-unit development necessary for the enjoyment of quiet and peaceful occupation of such unit”.
The owners’ management company’s (OMC) action should not have only been to deal with an aesthetic exercise in replenishing the finishing of an external wall and capping the roof section for direct rainfall but to also make good the relevant part as defined by the MUD Act 2011 Section 1; in this case providing for the cessation of damp transfer from the OMC wall to your unit. This section of the legislation identifies the necessity of a common area relevant to a member’s unit to be in good order so that peaceful occupation can be achieved.
I would recommend that you formally correspond with your OMC and request that they make good the external wall so that you may occupy your property without the disturbance of moisture transfer from perhaps driving rain.
It would have been a logical process for the OMC to appoint a qualified person to survey water ingress and provide appropriate guidance for the members to consider at a general meeting so as to agree the associated costs to remedy the issues.
If your experience of damp transfer is unique within the development it may be difficult for the members to agree the remedial costs if it does not affect the majority of the development.
Either way, there is an onus on the OMC to ensure that you are not experiencing damp transfer through a section of the common area. The common area should be fit for purpose in keeping damp out of your property.
A building surveyor would propose by way of a report, suitable remedial works for the cessation of damp transfer to a unit within the OMC. It is plausible that you may lose a few inches at the external wall end of your property to facilitate any approved remedial works.
Paul Huberman is a member of the Society of Chartered Surveyors Ireland (SCSI) Properties and Facilities Management Professional Group
