Revenue Note for Guidance
This section provides for refunds of Deposit Interest Retention Tax to first-time purchasers and in respect of “Self-built” properties built by first-time purchasers.
The repayment of DIRT will only be made to eligible first-time purchasers on the conclusion of the conveyance of the property into the name of the first-time purchaser during the period of the scheme
In relation to “self-built” properties built by first-time purchasers, repayment of DIRT will be made only where the dwelling has been completed to a standard where it is suitable for immediate occupation as a dwelling.
Relief is confined to DIRT paid on savings, up to a maximum of 20% of the purchase price of the house or apartment, in the 48 months prior to the purchase date.
This section has effect from 14 October 2014 and will be in place until 31 December 2017
(1) “completion value” in relation to a dwelling, means the price which the unencumbered fee simple of the dwelling might reasonably be expected to fetch on a sale in the open market were that dwelling to be sold on the relevant completion date in such manner and subject to such conditions as might reasonably be calculated to obtain for the vendor the best price for the dwelling and with the benefit of any easement necessary to afford the same access to the dwelling as would have existed prior to that sale;
“first-time purchaser” means a person, being an individual who, at the time of a relevant purchase or on the relevant completion date, as the case may be, has not, either individually or jointly with any other person or persons, previously purchased or previously built directly or indirectly on his or her own behalf any other dwelling;
“relevant completion” means the completion of the construction of a new dwelling, on or after 14 October 2014 and on or before to 31 December 2017, to a standard where it is suitable for immediate occupation as a dwelling and the dwelling —
“relevant completion date” means the date on which the dwelling becomes suitable for immediate occupation as a dwelling;
“relevant purchase” means the conveyance or transfer of a dwelling on or after 14 October 2014 and on or before 31 December 2017—
“relevant savings” means —
“relevant savings interest” means relevant interest paid —
(2)(a) Subsection 2(a) provides that despite the general prohibition in section 261(b) on repayments of DIRT (except for companies within the charge to corporation tax in respect of relevant interest), repayments of DIRT deducted from relevant interest may be made to a “first-time purchaser”.
(2)(b) Subsection 2(b) seeks to ensure that D.I.R.T. refunds are not claimed more than once under the provisions of the Tax Acts.
Relevant Date: Finance Act 2021