Tax break for home renovation
It is interesting to follow the British debate about home renovations. It might be useful to know that millions of Swedes have taken advantage of the tax breaks on offer from the Swedish government for home improvements and household work.
The so-called “ROT-avdrag” is a tax subsidy available to anyone wishing to make renovations or improvements on their homes. It was introduced as an effort to boost an under-pressure building industry and the tax break is on 50 percent of the cost of the work, up to a maximum of 50,000 kronor (roughly GBP 5000) per person, per year.
In addition there is a possibility to get a household deduction (RUT) for services done at your home, such as cleaning, cooking, babysitting, gardening and snow shovelling. The tax break for RUT is the same as for ROT.
In 2010 close to 12 percent of the population applied for the ROT deduction and 4.5 percent used the RUT deduction. The largest group that apply for ROT and RUT belong to the 35 to 70 year old age group.