Budget 2017 – Main Housing Measures
..more to follow
Mortgage Interest Relief – increased from 75% to 80% with 100% relief to be restored by 2021
Help to Buy Scheme – Rebate of income tax paid over previous four tax years up to a maximum of 5% on the purchase price of up to 400,000 for first time buyers.
Rent a room scheme – increasing by further €2,000 to bring it to €14,000 per annum. Income tax will not apply to this amount and will allow homeowners to rent out additional rooms.
Social Housing – €1.2 billion in funding for housing to the department for housing in 2017. To allow for continued implementation of housing action plan, 47,000 new social homes will be delivered by 2021. Capital allocation includes €50 million for 200 million local housing activation fund.
HAP – An additional €105 million for housing assistance payments scheme. This brings budget for this to €153 million, increase of 220% compared to 2016. This will enable additional 15,000 households to avail of this payment and will mean that over 21,000 applicants for social housing will have their housing needs met next year according to the minister
USC – Three rates of Universal Social Charge to be reduced. The 1 per cent to reduce to 0.5 per cent, the 3 per cent level to reduce to 2.5 per cent, and the 5.5 per cent level to reduce to 5 per cent. The ceiling on the 2.5 per cent rate to be lifted slightly to ensure those on minimum wage are kept out of top rate. Minister said intention to eliminate USC over time as resources allow.
Home Renovation Incentive HRI – scheme extended until 2018
Inheritance Tax Thresholds –
From parents to children from €280,000 to €310,000
inheritances left to parents, siblings,nieces, nephews or grandchildren has increased from €30,150 to €32,500. For other inheritances where there is no family relationship the threshold has increased from €15,075 to €16,250.