The Minister for Finance has announced a new tax relief incentive whereby first time buyers will be entitled to a 5% rebate on the purchase price of a new house up to the value of €400,000 on their income tax for the previous 4 years.
Pro-rata rates will apply to houses where the purchase price is below €400,000 while a full rebate calculated on a purchase price of €400,000 would apply to houses within the €400,000 – €600,000 price range. There will be no rebate for houses where the purchase price is in excess of €600,000.
It is important to note that the house must be a new build (including self-built homes) and the purchasers must take out a mortgage of at least 80% of the purchase price. This rebate will be back dated where contracts were signed after the 19th July 2016 and also where the first mortgage drawdown in the case of self-builds occurred on the 19th July 2016 or later. This rebate will remain in effect until the end of 2019.
Second hand homes are not included in the Help to Buy Scheme.
For more information on the above please contact Michael O’Grady in our office on 051 877029 or email [email protected]