Budget 2017 Announcements:
Home Renovation Incentive (HRI) The Home Renovation Incentive is extended for two more years, to end on 31 December 2018. This will allow additional time for landlords and homeowners to make the necessary renovations to their properties, and provide additional support to the construction sector for another two years.
Help To Buy
Help to Buy (HTB) Incentive A Help to Buy incentive is being introduced which is designed to assist first-time buyers with obtaining the deposit required to purchase a home or, first-time home owners looking to build their own home (self-builds). The incentive will only be available in respect of principal private residences. The relief will take the form of a rebate of an amount equal to income tax (including DIRT) paid over the previous four tax years. The maximum rebate available will be up to 5% of the purchase price of a new home valued at up to €400,000. Where a new home is valued between €400,000 and €600,000, the maximum rebate (i.e. €20,000) will continue to be available. No rebate will be available for new purchases costing over €600,000 or new-builds valued at over €600,000. The relief will be linked to a mortgage being taken out for a minimum of 80% of the purchase price, or in the case of a self-build, 80% of the valuation approved by the mortgage provider. Relief will be provided at deposit stage (signing of contract) or, in the case of a self-build, following the drawdown of the first tranche of the relevant mortgage. The incentive will be available, where all of the conditions are met, in the period commencing on 19 July 2016 and ending on 31 December 2019. Claimants will be able to apply online to Revenue for the relief from January 2017.