As part of the Government’s July Jobs Stimulus Plan in 2020, the enhanced Help to Buy (HTB) scheme was introduced, offering increased relief to eligible participants. This enhanced scheme is applicable for a defined period, running from July 23, 2020, to December 31, 2024. It presents an opportunity for homebuyers to access more substantial financial assistance.
Eligibility for Enhanced HTB Relief
To qualify for the enhanced HTB relief, you must meet specific conditions during the period between July 23, 2020, and December 31, 2024. These conditions include:
- Signing a contract for the purchase of a qualifying property or
- Initiating the first drawdown of a mortgage, in the case of a self-build qualifying property.
For reference, the original HTB scheme was in effect from January 1, 2017, to July 22, 2020.
Amount of Relief in the Enhanced HTB Scheme
Under the enhanced HTB scheme, eligible participants can claim an increased relief amount, capped at €30,000. The relief amount is calculated based on the following criteria:
- €30,000 or
- 10% of the purchase value of a new home or the approved valuation of a self-built property
- The total amount of Income Tax (IT) and Deposit Interest Retention Tax (DIRT) paid during the four years preceding your HTB application.
It’s important to note that the maximum relief payment is €30,000 per qualifying property. This means that regardless of the number of individuals entering into a contract to purchase the same qualifying property, the cap remains at €30,000.
Notably, the calculation of relief does not take into account Universal Social Charge (USC) or Pay Related Social Insurance (PRSI) contributions.
Relief Amount in the Original HTB Scheme
The original HTB scheme, which was in effect from January 1, 2017, to July 22, 2020, offered a slightly different relief structure. Under this scheme, eligible participants could claim the lesser of:
- €20,000
- 5% of the purchase value or approved valuation of the property
- The total amount of IT and DIRT paid during the four years before submitting the HTB application.
Similar to the enhanced scheme, the maximum payment in the original HTB scheme was €20,000 per qualifying property. USC and PRSI contributions were not factored into the relief calculation.
Payment of the Refund
If you purchase a qualifying property, the HTB refund will be directed to the qualifying contractor.
In the case of a self-built qualifying property, the refund will be deposited into a bank account held with your loan provider.
Understanding the relief amounts and payment procedures is crucial to maximize the benefits offered by the Help to Buy (HTB) scheme. Be sure to familiarize yourself with the specific conditions and requirements outlined in the scheme’s guidelines to make the most of this valuable opportunity.
Help to Buy Scheme How Much?
Apply Here https://www.revenue.ie/en/property/help-to-buy-incentive/how-much-can-you-claim.aspx