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The Help To Buy Incentive For First Time Buyers

October 26, 2016 Latest News 0 Comment

The Help to Buy incentive (HTB) is designed to assist first-time buyers with obtaining the deposit required to purchase or self-build a new house or apartment to live in as their home.

Time will tell whether or not this will provide a real financial benefit for first time buyers or increase property prices. Previous government interventions in the property market, although well intentioned, have not had the desired outcome.

The incentive provides for a refund of income tax and DIRT paid over the previous four tax years to first-time buyers who purchase or self-build a new house or apartment to live in as their home.

Who’s Entitled To Claim Under The Help To Buy Incentive?

  • A first-time buyer of a house or apartment who purchases or self-builds a new residential property between 19 July 2016 and 31 December 2019 may be entitled to claim a refund of income tax and DIRT paid over the previous four tax years.
  • The first-time buyer must not have either individually or jointly with any other person (directly or indirectly), previously purchased, or built a property. Where more than one individual is involved in purchasing or building a new home, all of the individuals must be first-time buyers.
  • The property must have been purchased or built as the first-time buyer’s home. It does not include properties acquired for investment purposes.
  • The property must be occupied by the first-time buyer, or at least one of the first-time buyers in the case of multiple first-time buyers (a group), for a period of five years from the date the property is habitable.

The online application can only be made from 3 January 2017. There will be two stages to this electronic process – an application stage and a claim stage. This includes applications for properties purchased or self-built between 19 July 2016 and 31 December 2016 can also be processed from January 2017.

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For related enquiries, further clarification and assistance with Tax matters contact Joe Cunnane at TRA Professional Services

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Joe Cunnane Practice Owner TRA Professional Services       Qualifications:  FCA Chartered Accountant & AITI Chartered Tax Advisor Joe has over 20 years experience working in both private practice and industry ... Read More »