Claiming HTB, HRI and DIRT Refund?

[TheManWho]

If you are a first time buyer of a new build house and carry out works on the house after closing on the sale, can you then claim Help-To-Buy (HTB), Home Renovation Incentive (HRI) and DIRT refund on your savings?

You can definitely claim HTB (assuming you've paid enough income tax\DIRT in previous four years).

HTB is 5% of purchase price to a limit of 20k. Say your claim is only 15k and you have paid more than 15k income tax in the previous four years, so your income tax covers HTB claim fully. Can you then separately go and claim back DIRT for previous four years (assume DIRT was less than 5k - in case the limit of 20k still applies when making separate claims?).

Finally, if you the move into your new home and carry out additional work on the property within the same year as claiming HTB, can you use the HRI scheme to claim back the VAT you've paid for this additional work (assuming the work qualifies and is over the specified minimum amount)?

 

[torblednam]

Not sure about the HRI question, but the HTB and DIRT refund are mutually exclusive, if you claim the HTB refund then you can't also claim DIRT refund.

Edit: actually, the way it's worded, your HTB claim includes a DIRT refund. See here: http://www.revenue.ie/en/property/help-to-buy-incentive/how-much-can-you-claim.aspx

The amount that you can claim is the lesser of:

• €20,000
• 5% of the purchase price of a new home. For self-builds this is 5% of the completion value of the property
• the amount of Income Tax and Deposit Interest Retention Tax (DIRT) you have paid in the four years before your purchase or self-build.

 

[TheManWho]

Yes HTB may include both Income Tax and DIRT to make up the €20,000. However it is not necessary to include DIRT when applying for HTB. When making your application for HTB, if your Income Tax for the previous four years is at least €20k then you can proceed with the HTB without specifying any DIRT information.

If you apply for HTB and only specify your Income Tax as the source of HTB refund, then it would seem natural that you could apply for DIRT refund separately as DIRT has not been included in the refund Revenue have issued.

I've not read anything from Revenue that states you absolutely cannot apply for a DIRT refund if you have applied for HTB. But possibly someone more familiar with these schemes has information?