The Help to Buy incentive is designed to assist first-time buyers with obtaining the deposit required to purchase a new home.
The incentive provides for a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid over the previous four tax years to first time buyers. The maximum relief is 5% of the purchase price up to a maximum of €20,000.
In order to qualify the developer must be a qualifying contractor.
Bridgedale are a qualifying contractor.
Do I Qualify?
You must be a first-time buyer and must not have either individually or jointly with any other person (directly or indirectly), previously purchased, or built a house or apartment.
- Where more than one individual is involved in purchasing a new home, all of the individuals must be first-time buyers.
- You must be tax compliant. If you are self-assessed you must also have eTax clearance.
- For a property to qualify under the scheme it must be owner occupied.
- It must be a new build home and the construction must be subject to VAT in Ireland.
- The purchase value of the property cannot be more than €500,000 for properties bought after 1 January 2017.
- You must take out a mortgage on the property with a qualifying lender and this loan must be used solely for the purchase or building of the property.
- The loan to value ratio must be greater than 70%.
If I Qualify What Next?
Provided that you are tax compliant you will be provided with an Application Number and a summary of the maximum relief available to you by Revenue. You will be issued with an Access Code. The developer will require this information to verify the tax relief claim.
- Once you have signed the contract for your home and are ready to make your claim you will need to upload a copy of a signed contract and evidence of mortgage approval to Revenue.
- You will need the following information: the purchase price, estimated date of completion, mortgage details, and the deposit already paid.
- Once the claim is submitted, you should provide the developer with your claim number and the access code already provided. Before any refund is paid, the information you have given will need to be verified by the developer.
- The refund will be paid to the approved Developer/Contractor as part of the deposit required from the first-time buyer.