Unlocking homeownership: The Help to Buy scheme explained

The Help to Buy (HTB) scheme is designed to assist first-time buyers fund the deposit required to purchase or self-build a qualifying property to live in as their home. HTB 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 the legislation (section 477C Taxes Consolidation Act 1997).

An enhanced HTB scheme was introduced in 2020 as part of a Government Stimulus package. The enhanced HTB relief has been further extended and is now set to expire on 31 December 2025. The enhancement provides that where applicants sign a contract for the purchase of qualifying property, or make the first drawdown of the mortgage in the case of a self-build property, during the period from 23 July 2020 to 31 December 2025, they will be eligible for increased relief under the HTB scheme to the lesser of:  (1) (2) (3) €30,000 (up from €20,000), or the amount of Income Tax and DIRT paid for the four years prior to making the application, or 10% (up from 5%) of the purchase value or approved valuation for a self-build.

Types of Applicant

Two types of applicants can apply for the HTB scheme:

  1. First-time purchaser applicants  – where a contract is signed for the purchase of a new home between 1 January 2017 and 31 December 2025 the information you provide at the claim stage will be verified by your approved Qualifying Contractor. Once approved by Revenue, the refund will be paid to the approved Qualifying Contractor as part of the deposit required from the first-time purchaser.  It is your responsibility to ensure that your contractor is registered as a Qualifying Contractor prior to purchasing your home.
  2. Self Build – applicants may qualify for funding of up to 30% of the build cost of their home. The Help to Buy (HTB) scheme is available for self-build homes. If you are availing of the HTB the maximum amount you may be eligible for from the FHS will be 20% of the build cost.

If you have any questions regarding any of the above schemes, please do not hesitate to get in touch with our conveyancing department or call us at 051-874-909 or email us at info@poc.ie.

For more information see https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx