Now extended until December 2022, Ireland’s Help To Buy Scheme is an incentive aimed at helping first-time buyers. The scheme was introduced in 2017 to boost construction in Ireland and help more people get on the property ladder. Not only is the Help To Buy Scheme available for home purchases, but it is also open for self-builds.
There are, of course, stipulations that dictate who can avail of the Help To Buy scheme. Below we address some of the most common questions about the scheme.
How Much Relief Is Available?
The most you can expect to receive is between €20,000 and €30,000. Whichever of the following is the lesser dictates the figure you will receive.
- 5% of the purchase price*
- 5% of the (approved) valuation of a self-build*
- The amount of Income and DIRT tax you have paid four years prior to application
- €20,000 – €30,000
For those qualifying for enhanced relief, this will be 10%
Who Can Apply For the Help To Buy Scheme in Ireland?
To be successful with your application to the scheme, you must not have owned a property previously. It is strictly first-time buyers only, and that goes for couples too. When buying a home as a couple, the Help To Buy Scheme takes the history of both parties into account.
If I Inherited Property Before Applying, Will I Be Ruled Out?
If you have inherited property prior to applying for the Help To Buy Scheme, you won’t necessarily be disqualified.
I need a guarantor for my mortgage. Will I be disqualified?
Having a guarantor and your guarantor not being a first-time buyer should not affect your application negatively.
Does My Tax Record Affect My Application?
Yes. For a successful application to the Help To Buy Scheme, you must be tax compliant. This applies to the four years prior to your application and five years following reimbursement.
You must also be registered for the online myAccount service on Revenue.ie. Alternatively. If you are self-assessed, you must be registered for ROS.
If you are not tax compliant, you do have the option of paying overdue taxes before applying.
Can I Apply If I Already Bought My Home?
Yes, retrospective applications are allowed. You must still meet the criteria of being a first-time buyer within a certain time period.
What Kind of Property Can I Buy?
The only criteria for property type are that the property you buy is your primary residence. You cannot, therefore, purchase a business or industrial property under the scheme.
This includes self-builds which must be solely for the purpose of becoming your primary residence.
It is important to note that a self-build must be just that. Renovations and refurbishments do not count as self-builds under this scheme.
Is Every Type Of Residential Self-Build Eligible?
In short, no.
For your self-build to be eligible for this scheme, you must be using a qualifying contractor. The complete list of qualifying contractors can be found on the Revenue website here. Your solicitor must also submit an application to Revenue. This is so that they can become registered for the purposes of verifying the HTB self-build claim.
Important Dates Help To Buy Scheme To Remember
There are two sets of dates that are important to remember when applying for the Help To Buy scheme.
The first is the date you buy or build. This has to be before January 1st 2022, and after July 19th 2016.
The second date is the five years following receipt of the rebate. This is how long you must live in the property and also how long you must be tax compliant.
How To Apply For The Help To Buy Scheme?
You can apply through your MyAccount on Revenue.ie if you are a PAYE (Pay As You Earn) employee.
Self-assessed applicants must apply through ROS.ie.
It is important to note that any applicants must proceeded to the claim stage by the deadline.
I applied before July 2021 but haven’t signed a contract or drawn down my mortgage yet – Will I get the higher amount?
If you applied before July 2021, you have the option to cancel and reapply. If you continue with your original application, you will only be considered for the lower rate.
To receive the advanced scheme value, you must resubmit before the end of 2021.
There is no penalty for cancelling and reapplying.
Who Operates Help To Buy Scheme in Ireland?
Ireland’s Help To Buy Scheme is an Irish Government scheme.
Can The Government Take Back My Help To Buy Scheme Refund?
Yes. If for some reason you are found to no longer fit the criteria, the government is entitled to renege the application refund.
Will I Receive The Help To Buy Scheme Refund Directly?
How you receive the scheme refund depends on when you applied.
You will receive the refund directly if you bought or built your home between July and December 2016.
The contractor will receive the refund for new builds bought after January 2017.
Refunds will be paid to your loan provider bank account if you self-built after January 2017.
A Step by Step Guide to Applying for The Help To Buy Scheme:
- Step 1: Register with MyAccount at Revenue.ie if you have not already done so.
- Step 2: Complete Form 12 if you are PAYE or Form 11 if you are Self-Assessed.
- Step 3: Your Solicitor will provide you with a new home contract.
- Step 4: Upload the new home contract to your application.
- Step 5: Add your mortgage lender and mortgage details to your application. For self-build, add your contractor details.
Got a question?
If you have a question about this scheme or to do with purchasing or developing property, get in touch. You can contact Whelehan Solicitors in Tralee, Kerry , www.whelehansolicitor.ie by telephone on 066 712 9782 or by email at firstname.lastname@example.org. Please note that we do not charge for the initial consultation. However subsequent meetings may be charged for.