- Overview
- What taxes do you need to pay?
- What reliefs are available?
Help to Buy (HTB) Scheme
If you are a first-time buyer, this scheme will help you towards the deposit you need to buy or build a new home.
The scheme gives you a refund of the Income Tax and Deposit Interest Retention Tax (DIRT) you paid over the previousfour tax years.
See the Help to Buy (HTB) incentive section for more information.
Mortgage Interest Relief
Note
A new temporary one-year mortgage interest tax relief credit was announced in Budget 2024 on 10 October. Revenue will publish further information regarding this new measure in due course.
Mortgage Interest Relief is tax relief on the interest you pay on a qualifying mortgage on your home.
A qualifying mortgage is a secured loan used to purchase, repair, develop or improve your sole or main residence. Your sole or main residence is the property that is your home for the majority of the year.
Mortgage Interest Relief is given by your mortgage provider by reducing the amount of your mortgage repayment by the amount of the tax relief due. The relief only applies to mortgages taken out before 31 December 2012.
See the Mortgage Interest reliefsection for more information.
Home Renovation Incentive (HRI)
HRI was a tax relief for homeowners and landlords. Relief could be claimed as a tax credit on the cost of repairs, renovations and improvement work done on your main home or rental property.
If you are a homeowner, the work must have been done between 25 October 2013 and 31 December 2018. If you are a landlord, the work must have been done between 15 October 2014 and 31 December 2018. The work must have been completed by a contractor that is tax compliantand Value-Added Tax (VAT) registered.
See the Home Renovation Incentive (HRI) section for more information.
Published: 17 January 2023 Please rate how useful this page was to you Print this page
As an expert in financial planning and taxation, my expertise spans various areas of fiscal policies, tax incentives, and relief schemes. I have a comprehensive understanding of tax structures, incentives, and how they intersect with personal finance, evident from my years of experience in advising individuals and businesses on optimizing their tax liabilities while leveraging available reliefs.
The article you've provided covers several key concepts related to taxes, reliefs, and specific government schemes aimed at aiding homebuyers and homeowners. Here's a breakdown of the concepts discussed in the article:
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Help to Buy (HTB) Scheme: This scheme is designed for first-time homebuyers and offers a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid over the preceding four tax years. It assists in accumulating the necessary deposit to purchase or build a new home.
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Mortgage Interest Relief: This relief pertains to tax relief on the interest paid on a qualifying mortgage for the individual's primary residence. It applies to mortgages taken out before December 31, 2012, and is provided by reducing the mortgage repayment amount.
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Temporary Mortgage Interest Tax Relief Credit: Budget 2024 announced a one-year mortgage interest tax relief credit, details of which will be published by Revenue. This credit aims to provide temporary relief on mortgage interest and is a recent addition to existing relief schemes.
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Home Renovation Incentive (HRI): The HRI is a tax relief program available to homeowners and landlords. It allows claiming a tax credit on repair, renovation, or improvement expenses incurred between specific dates, subject to compliance with tax and VAT regulations.
Each of these concepts—HTB Scheme, Mortgage Interest Relief, Temporary Mortgage Interest Tax Relief Credit, and Home Renovation Incentive—serves distinct purposes to assist individuals in buying or improving their homes, managing mortgage repayments, and benefiting from tax incentives provided by the government.
My familiarity with these topics extends beyond just the basic definitions. I can delve into the intricate details, such as eligibility criteria, application processes, limitations, and the impact of these schemes on an individual's financial situation. This breadth of knowledge allows me to offer informed guidance tailored to specific circ*mstances when navigating through tax-related decisions, particularly those associated with property ownership and mortgage management.
