Dáil Éireann Debate, Tuesday - 25 October 2016
168. Deputy Catherine Murphy asked the Minister for Finance if an analysis of the estimated cost of back-dating the help to buy scheme to the date the Central Bank rules came into effect for first time buyers has been undertaken; if there are impediments other than cost that have resulted in the scheme not being back-dated; and if he will make a statement on the matter. [31499/16]
View answerThe commencement date for the Help to Buy scheme of 19 July 2016 was chosen as it was the date of the launch of 'Rebuilding Ireland - Action Plan for Housing and Homelessness', in which the development of such a scheme for inclusion in the Budget was initially announced. The intention to backdate this tax incentive to this date was announced at that time with a view to avoiding any potential interruption in house sales, by purchasers who may otherwise have deferred purchases, pending the commencement of the incentive.
No estimate of the cost to back date the scheme to the date of the introduction of the Central Bank's macro prudential rules has been completed. To extend eligibility for the scheme further back than the date of its initial announcement would consist entirely of deadweight, as individuals who purchased new homes after the introduction of the Central Bank's rules did not need the assistance of the State to fund the required deposit. Such individuals made their purchasing decisions on the basis of the information available to them at the time of purchase, and could not have expected a subsequently introduced tax relief to be available to them.
As with all time bound reliefs, there will always be those who just miss out on qualification. I do not intend to extend the parameters of this new measure any further as it would become less targeted and more costly.
