Help to buy scheme – effective 3rd January.
The Help to Buy scheme introduced in the last budget comes into effect today. It allows purchasers to claim a rebate of income tax already paid up to a maximum of €20,000, depending on the value of the property.
Who is entitled to claim?
A first-time buyer of a house or apartment who purchases or self-builds a new residential property between 19 July 2016 and 31 December 2019 may be entitled to claim a refund of income tax and DIRT paid over the previous four tax years.
The first-time buyer must not have either individually or jointly with any other person (directly or indirectly), previously purchased, or built a property. Where more than one individual is involved in purchasing or building a new home, all of the individuals must be first-time buyers.
The property must have been purchased or built as the first-time buyer’s home. It does not include properties acquired for investment purposes.
The property must be occupied by the first-time buyer, or at least one of the first-time buyers in the case of multiple first-time buyers (a group), for a period of five years from the date the property is habitable.
What you need to do before you apply
Before you apply, all first-time buyers must:
- be registered for myAccount (PAYE) or ROS (self-assessed), and
- if you are a PAYE taxpayer, you will need to complete Forms 12 (if you have not already done so) for the tax years you select for refund, or
- if you are self-assessed, you will need to complete Forms 11 (if you have not already done so) for each of the four years immediately prior to the claim. Any outstanding taxes must be paid.
How to apply
The online application can be made from 3 January 2017. However, taxpayers may file their Forms 11 or Forms 12, as appropriate, in advance of this date. There will be two stages to the HTB electronic process – an application stage and a claim stage.
Applications for properties purchased or self-built between 19 July 2016 and 31 December 2016 can also be processed from January 2017.
- If you are a ROS business user (self-assessed) you can apply through ROS
- If you are a PAYE employee only, you can apply through myAccount
Information applicants need to make a claim
To make a claim, you must enter the required information online, confirming the:
- contract is signed (a copy of the signed contract must also be uploaded)
- balance of the deposit is paid / total deposit
- property details
- purchase price
- purchase date/completion date
- mortgage institution details
- mortgage approval details (including loan-to-value ratio)
- details of each first-time buyer
- portion of refund agreed for each first-time buyer (if a group)
- details of the Developer/Contractor (if property purchased)
- details of the Solicitor (if a self-build)
- proof of drawdown of the first tranche of the relevant mortgage (if a self-build)
Once the claim is submitted, as part of the claim stage, the details will need to be verified by the Developer/Contractor in the case of a new build or a Solicitor, acting on your behalf, in the case of a self-build before the refund will be paid.
For further information contact us at 04-9810160 or follow this link for a guide;
Help to Buy – Summary guide for Help to Buy Applicants
