Subject to Oireachatas approval the scheme will be backdated to the 19th of July 2016. This is the date at which the first mortgage payment was drawn down. This scheme will run until the end of 2019. Once the claim is submitted, the details will need to be verified by the Developer/Contractor or firsttime buyer (for a self-build), before the refund will be paid. At the time we went to print a calculator and application portal was to be made available from 03 January 2017 on the Revenue website (see end of article for link).
example does not seem to qualify, however, as each case is different, it is not possible to state unequivocally that the build in the example provided will or will not qualify as a new build. However, we must highlight that the onus of proof is on the taxpayer to prove that the property is a new build. If a building has previously been registered with the Property Registration Authority or registered for LPT, the claimant will have to prove that this property is in fact a new build, and not merely the extension of an existing building or a rebuild of an existing property. Detailed information must be supplied as part of the claim process.”
In calculating the mortgage’s loan to value ratio, how is the final house valuation determined?
I was abroad working for the last few years, can I still avail of the incentive?
You need to borrow an amount representing at least 70% of the ‘approved valuation’ of the house. In the case of a self-build the house is not yet built, so this ‘approved valuation’ is defined as current market value. In the words of the Finance Bill: “the valuation of the residence that, at the time the qualifying loan is entered into, is approved by the qualifying lender as being the valuation of the residence”.
In relation to the following statement: “The first-time buyer must not have either individually or jointly with any other person (directly or indirectly), previously purchased, built or inherited a property.” What if someone inherited land previously but that person is building their first house on another piece of land?
According to the Department of Finance: “Yes the person should still be eligible to apply under the scheme, subject to the additional terms and conditions.” The Finance Bill defines a qualifying loan as one that “is used by the first-time purchaser wholly and exclusively for the purpose of defraying money employed in the purchase of a qualifying residence, or the provision of a self-build qualifying residence (including, in a case where such acquisition is required for its construction, the acquisition of land on which the residence is constructed).”
What if you bought a property with an old house on it, and got planning for a new dwelling as the old one was not fit for purpose?
The Finance Bill states: ‘Qualifying residence’ means a new building which was not previously used, or suitable for use, as a dwelling […]. We have asked the Department of Finance whether someone demolishing a house to build new would qualify; the answer we were given is as follows: “A new-build is a property that has not been occupied before. The property must not have been used as a residence before. If the property in question falls within the definition of a qualifying residence for the purposes of the legislation then the property may qualify as a new build. The www.SelfBuild.ie
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What are the timelines?
The relief is based on income tax and DIRT paid over the previous four years. You may be eligible for some contribution from the incentive depending on your circumstances. For example, if you had worked in Ireland in Year 1 and spent Years 2 to 4 abroad, you may still qualify for some relief in respect of the income tax paid in Year 1. Obviously, where no income tax has been paid, there is no tax available to refund. In all cases, make sure to contact Revenue to discuss your particular circumstances. Astrid Madsen Further information HTB Revenue website: http://www.revenue.ie/en/ tax/it/reliefs/htb/index.html Appendix D of the Budget 2017 document, on page B.32: http://www.budget.gov.ie/Budgets/2017/ Documents/Budget%202017%20-%20Full%20 document.pdf Better Energy scheme: http://www.seai.ie/Grants/ Better_energy_homes/Better_Energy_FAQ/ Homeowner%20FAQ/How-much-are-the-grants-. html Home Renovation Incentive: http://www.revenue. ie/en/tax/it/reliefs/hri/index.html
This article is for reference only, always consult with a qualified professional when dealing with legal, fiscal and building related matters.
Grants for energy upgrades The Better Energy Homes grants to retrofit your home with insulation/ solar panels/heating upgrades have benefited from the budget too in that funding for the scheme has been increased. However according to informed sources, this will in all likelihood go towards offering the grant to more households (with a pick up in the economy, demand for the Better Energy Homes scheme has risen) rather than increase the individual grant amounts (these were augmented in 2015) or introduce new technologies/materials that might qualify such as heat pumps or triple glazing. Another, more long term point to note is that “deep retrofit” projects (energy upgrades that result in the house requiring very little fuel to run) have also been awarded funding. In 2017 the Sustainable Energy Authority of Ireland is expected to devise strategies that will better advise and inform householders on how to go beyond simply adding insulation to the home (See comment piece page 129). As a point of clarification, the new Renewable Heat Incentive will not apply to households.
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