Local Fine Gael Councillor, Tom Farrell, has noted the pertinent benefits of the enhanced Help to Buy Scheme designed to ease the financial burden for first time buyers of residential properties.
“The enhanced Help to Buy Scheme was announced by my colleague Minister Peter Burke’s department in July and I believe there could be a lack of knowledge about this relief among the public and young couples. The Help to Buy Scheme is designed to ease the financial burden for first time buyers and it can make a huge difference for those who are eligible. Tax Relief increases from €20,000 to €30,000 for first time buyers who purchase a new house or self-build,” Cllr. Farrell remarked.
The Help to Buy (HTB ) Incentive was improved as part of the July Jobs Stimulus. It aims to help first-time buyers of newly built homes to buy a new house or apartment and also applies to once off self-build homes.
“The scheme gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT ) over the previous four years. If you sign a contract for a new house or draw down a mortgage from now until December 31 2020, you can claim the tax relief.
“You can claim relief on what is the lesser, €30,000 or 10 percent of the cost of the property or self-build which is put against an individual or a couples’ income tax and DIRT paid over the previous four years.
“If you have already applied, you should cancel your original application and reapply to avail of these increased reliefs. As things stand, the relief will revert to €20,000 or five percent of the purchase price in 2021. However I will be lobbying Minister Burke for the scheme to be extended,” Cllr Farrell commented.
There is presently an online process operated via Revenue’s Online Services (ROS ) and further information is available on Revenue’s website.