The DIRT First Time Buyers Relief (Ireland) - A Brief Note

It was announced in Budget 2015 that First Time Buyers’ will be able to save for their first home and retain 100% of the interest that they earn on their savings.

Section 266A of the Taxes Consolidation Act 1997 provides for refunds of DIRT (Deposit Interest Retention Tax) for first time buyers who purchase a house or apartment to live in as their home.

So, who is entitled to claim the refund and are there any conditions?

1. A first time buyer of a house or apartment who purchases or builds a property between the 14th October 2014 and the 31st December 2017 may be entitled to claim a refund of DIRT. 2. A first time buyer who builds, during the same period, their own home to live in immediately on completion may also be entitled to claim a refund of DIRT. 3. The first time buyer must not have previously purchased or built a house or apartment, either by themselves or jointly with any other person. 4. The property must be the principal private residence of the first time buyer. 5. It does not include properties acquired for investment purposes.

When is the First Time Buyer entitled to claim the refund?

A first time buyer is entitled to claim the refund of any DIRT deducted from interest earned on savings used for the purchase of the property or a self build, in the 2 years prior to the purchase date or date of conveyance.

The refund is restricted to the DIRT paid on the savings up to a maximum of 20% of the purchase price of the property, or in the case of a new self build, 20% of the completion value of the property.

And, how do you go about making a claim for the refund?

* Well, to make a claim, the property must be registered for the Local Property Tax (LPT). * Once it is registered, you, as the first time buyer, log into to the LPT on-line system by entering your PPS number, Property ID and secure LPT Pin. * Once in the LPT system, you click ‘Claim DIRT F.T.B. Refund’. This will display a claim form and you enter the required information, as follows: * The amount of DIRT to be refunded * The purchase price of the property or the final completion value of the new build * The date of the purchase of the property * The email address of the first time buyer * The bank account details to which the refund will be paid into * The evidence of the DIRT deducted by the bank, for example, bank statements or certificate of deposit interest.

I hope you found the above useful and if you have any questions, please contact me.

Thank you for reading.

Timothy Kelliher Chartered Accountant