What is the Help to Buy (HTB) Incentive?
The HTB incentive is designed to assist first-time buyers with obtaining the deposit required to purchase a new home.
Who is entitled to claim?
A first-time buyer of a house or apartment who purchases a new house in the period up to the 31 December 2019 may be entitled to claim a refund of income tax and DIRT tax paid over the previous four years.
The first-time buyer must not have either individually or jointly (directly or indirectly), previously purchased or built a house or apartment.
What properties qualify under the scheme?
- You must be a First time buyer
- Purchase price cannot be more than €500,000 for properties bought after 1 January 2017
- Applicants must be borrowing at least 70% of the value of the property
- The builder must be an approved qualifying contractor by Revenue.
What am I entitled to claim?
5% of the purchase price of a new home with a value of €500,000 subject to a maximum of €20,000. For example: a house worth €400,000 would be liable to maximum tax relief of €20,000 i.e. 5% of purchase price.
How do I apply?
There are two stages to the HTB process – an application stage and a claim stage.
A. Application Stage
Purchasers must have registered with Revenue’s myAccount online service and need to complete a Form 12 for each of the tax years you are seeking a rebate for tax paid. When you have completed the paper Form 12, you can scan it and then upload to MyEnquiries. Once deemed eligible by Revenue you will be provided with an Application Number and a summary of the maximum relief available to you. Separately you will be issued with an Access Code through MyEnquiries. Both of these will be required by your lender and qualifying contractor.
B. Claim Stage
You will need to upload the following information through MyEnquiries:
• a copy of the signed contract
• mortgage approval details (including Loan-to-value ratio)
You should then login to HTB through myAccount and make your claim. You will need your MyEnquiries reference number. You will need to confirm details relating to the property, the purchase price, date of completion and the deposit already paid.
Once the claim is submitted, as part of the claim process, the details will need to be verified by the Developer/Contractor.
How will the tax refund be paid?
The tax refund will be paid to the qualifying contractor
For further information on the Help to Buy Incentive please follow the links below:
My Enquiries http://www.revenue.ie/en/online/myenquiries.html