HELP TO BUY SCHEME
The Help to Buy (HTB) Scheme is designed to assist first-time buyers of newly built homes with their required deposit. It also applies to once-off self-build homes.
The Help to buy Scheme provides for a refund of income tax and Deposit Interest Retention Tax (DIRT) paid over the previous 4 tax years.
- If you are a first -time buyer who either buys or self-build a new residential property between 19th July, 2016 and 31st December, 2019. You may be entitled to claim a refund of income tax and DIRT paid over the previous 4 tax years.
- If you signed a contract to buy a property (or drew down the first tranche of the mortgage for a self-build) before 19th July, 2016, unfortunately you do not qualify for this scheme.
- If you are buying (or self-building) the property with someone else, they must also be a first-time buyer. You will not qualify if you have previously bought, built or inherited a property, either individually or jointly with anyone else.
- The incentive only applies to properties that are bought as the first-time buyer’s home. It does not cover investment properties. Cash buyers do not qualify.
- You must take out a mortgage of at least 70% of the purchase price (or, for a self-build, 70% of the valuation approved by the mortgage provider).
- If you signed a contract to buy a property (or drew down the first tranche of the mortgage for a self-build) between 19th July, 2016 and 31st December, 2016, you may qualify for the Help to buy Scheme on a property costing up to €600,000.00.
- With effect from 1st January, 2017, the Help to Buy Scheme only applies to properties costing €500,000.00 or less.
- You must occupy the property for 5 years from the date that it is habitable, otherwise a claw back may be triggered by the Revenue Commissioners.
If you pay tax through PAYE, you must be registered for Revenue’s online myAccount service. If you are a self-assessed taxpayer, you must be registered for the Revenue Online Service ROS.
In all cases, you must be fully tax-compliant in respect of the 4 years immediately prior to your claim.
If you have not already done so, you will need to complete online Form 12 (PAYE) and Form 11 (self assed) in respect of each of those 4 years. You must also pay any outstanding taxes that are due.
|Purchase Price of Valuation||Amount of Relief|
|Up to €400,000||Up to 5% of purchase price|
|Between €400,000 and €600,000, between 19th July, 2016 and 31st December, 2016||Maximum relief will be €20,000|
|Over €600,000, between 19th July, 2016 and 31st December, 2016||No relief|
|Between €400,000 and €500,000, from 1st January, 2017||Maximum relief will be €20,000|
|Over €500,000, from 1st January, 2017||No relief|
How to Apply:
If you are a PAYE employee only, you can apply for the Help to Buy Scheme.
If you are a self-assessed taxpayer, you can apply through Revenue’s Online Service (ROS).