Please note the new ‘Enhanced Help to Buy’ is applicable from 23 July 2020 to the 31 December 2024. The original help to buy scheme applies from the 1 January 2017 to 22 July 2020.
The Help to Buy scheme applies only to new homes for first-time buyers
The process of purchasing your first home can be an incredibly daunting task. From the jitter of nerves and excitement the moment you find your dream house up until the ‘sale agreed’ sign is placed outside, the journey to becoming a homeowner is often a long, challenging process. Not to mention that your home will likely be the most expensive thing you buy in your adult life. The first step for most is getting your deposit together. To make this process a bit easier on your pocket, a Help to Buy incentive was introduced in 2017. However, if you’re still confused about the process, our AA Home Insurance team has compiled a short guide on what you need to know.
Who is entitled to The Help to Buy Scheme?
If you bought a new build or built your home as a first-time home buyer between 19 July 2016 and 31 December 2022 (as extended in Budget 2022), you may be entitled to claim a tax refund. This includes the Income Tax and Deposit Interest Retention Tax (DIRT) you paid in Ireland over the previous four years. The property must be a newly built home and occupied by a first-time buyer for five years from the date the property is habitable. Where more than one individual is involved in purchasing a new home, all individuals must be first-time buyers. Applicants must have taken out a mortgage for at least 70% of the property’s value. The maximum relief available is 5% of the property’s value, up to €20,000 or the total Income Tax and DIRT paid in the previous 4 years. The scheme is only available to those buying properties valued at less than €500,000 (or less than €600,000 if bought before 31 December 2016).
Enhanced Help to Buy Scheme
A temporary enhanced Help to Buy scheme applies to properties bought between 23 July 2020 to 31 December 2024 as part of the covid-19 July Stimulus package. This allows an increase in the maximum claim to €30,000, 10% of the property price, or the total amount paid in Income Tax and DIRT (whichever is lowest).