Help to Buy Scheme - What you need to know
The Help to Buy [HTB] incentive is designed to assist first time buyers fund the deposit required to purchase a new home to live in as their own home. The scheme provides for a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State for the previous four tax years, subject to limits outlined in legislation (section 477C TCA)
Lighthouse View Homes will be part of the HTB process where a first time buyer is purchasing a new home and will be required to verify the property sale.
Baraduff Homes Ltd is registered as a Qualifying contractor on the Revenue’s website.
As part of the Governments July 2020 stimulus package the temporary enhanced HTB relief has been extended to 31 December 2021 so currently for applicants to claim they must be:
- be a first-time buyer
- buy or build a new property between 19 July 2016 and 31 December 2021
- live in the property as your main home for five years after you buy or build it
- be tax compliant, if you are self assessed you must have tax clearance. You must be fully tax-compliant for the 4 years immediately before your claim. If you have not already done so, you will need to complete online Form 12 (PAYE) and Form 11 (self-assessed) for each of those 4 years. You must also pay any outstanding taxes that are due.
Applicants will be eligible for enhanced relief under the help to buy scheme to the lesser of:
- €30,000 (up from €20,000), or
- The amount of income tax and DIRT paid for the 4 years prior to making the application, or
- 10% (up from 5%) of the purchase price
The following documents are available from revenue to help applicants understand the Help to Buy Scheme Process.
Help to Buy Scheme – Summary Guide for Help to Buy Applicants
Help to Buy (HTB) - Part 15-04-46 Section 477C of the Taxes Consolidation Act (TCA) 1997
Applicants Eligibility to Apply:
- You must have signed a contract to purchase a new build property on or after the 19th July 2016 and on or before 31 December 2021. Where a contract is signed for the purchase of this new home the information provided by the applicant at application stage will be verified by the approved Developer/Contractor. The refund will be paid to the approved Developer/Contractor as part of the deposit required from the first time buyer. Stages of the application process is explained below under ‘The Summary Guide for Contractors/Developers’
- The purchase price of the property must be €500,000 or less.
- You must take out your mortgage on the property with a qualifying lender. This loan must be used only for buying or building the property. The loan must be at least 70% of the purchase value of the property. This is known as the loan to value ratio. You are allowed to have a guarantor on the loan.
There are two stages to the HTB Process:
This stage is completed by the applicant through My Account & MyEnquiries on the revenue website. There will be systematic checks carried out to ensure the applicant is tax compliant.
Once the applicant has entered into a contract to purchase a home or draws down the first stage of their mortgage they may complete the claim stage. A HTB Qualifying contractor will be required at this stage to verify the property sale. Barraduff Homes will be directly involved in the claim stage with you and will assist you with your application.