First time buyers can claim a tax rebate equal to 5% of the value of the new house they are buying from January 2017. A New home is defined as “a new building which was not previously used, or suitable for use, as a dwelling.” Second hand homes are not eligible.
Some people are referring to this scheme as a First Time Buyers Grant.
The Help to Buy tax rebate of up to €20,000 will be available only to first time buyers to help them purchase a new home in Ireland. It is aimed at people who might not be able to afford to put down a 10% deposit in line with Central Bank Mortgage Rules.
The tax rebate can also be claimed on new homes that were bought since July 19th 2016. But, 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 you will not be eligible for the Help to Buy Scheme
Important : The rebate applies to NEW homes only (Including self builds)
The Help to Buy scheme is due to finish at the end of 2019.
Bonus : If first time buyers also manage to take out one of the mortgages with cashback – such as with Bank of Ireland , they could get as much as 8% total cashback.. See the Lowest Mortgage Rates Here
Applications for Help to Buy
There are 2 stages to the HTB Application :
Stage 1 is to work out the maximum relief available to you under the scheme based on tax payments you made in the relevant years. You can apply before you choose a house or apply for a mortgage. Once you know the maximum rebate possible – you can then arrange a mortgage and/or sign a contract with a prospective Qualifying Contractor.
When mortgages and contracts are signed you will need to complete Stage 2 of the Help to Buy Claim where the exact rebate will be worked out based on purchase price.
Payments of the rebate will be made directly to the builder/developer as part of the deposit. The builder/developer must have registered with Revenue as a registered contractor under the Help to Buy Scheme . Only properties built by a registered contractor will be eligible.
In the case of a self build – the payment wil be made direct to the bank providing the mortgage.
Before making an application for the Help to Buy Scheme , you will first need to complete Online Forms 12 (if a PAYE taxpayer) OR Forms 11 (if self-assessed), in respect of each of the four tax years and you must pay any outstanding taxes due.
Applicants will also need to register to use the Revenue’s MyEnquiries service.
Source – http://www.moneyguideireland.com/
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