Dáil Éireann Debate, Thursday - 19 January 2017
75. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which existing incentives for first-time house buyers are assisting those who are eligible; and if he will make a statement on the matter. [2323/17]
View answerI assume the Deputy is enquiring about the parameters of the Help to Buy incentive which was initially announced on 19 July 2016 as part of the "Rebuilding Ireland: Action Plan for Housing and Homelessness." The design of the scheme was outlined in Budget 2017, and the full details were set out in Finance Act 2016.
The initiative aims to assist a first-time purchaser fund the deposit required to purchase or self-build a new house or apartment to live in as their home. The scheme is open to both those who are purchasing new builds from a developer, and those who self-build. By restricting it to new builds and new self-build homes only, it is anticipated that the resulting increase in demand for affordable new build homes should encourage the construction of an additional supply of such properties.
Broadly, the relief takes the form of a rebate of income tax, including DIRT, paid over the previous four tax years. The maximum possible rebate is 5% of the purchase price or valuation for a self-build up to a maximum of €400,000. Although relevant properties valued at up to €500,000 can qualify, the maximum relief is capped at €20,000 per property, subject to the applicant having paid sufficient income tax and DIRT over the previous 4 years. Where more than one individual is involved in purchasing or building a new home, all of the individuals must be first-time buyers.
There are additional conditions of the scheme that must be met, including that the property must have been purchased or built as the first-time buyer's principal private residence, and that the mortgage taken out to purchase or build the home must be a minimum of 70% of the purchase price or 70% of the value of the property in the case of a self-build.
Applications for the Help to Buy incentive can be made to the Revenue Commissioners. Further details on it and how to apply are available from the Revenue Commissioners website at the following links:
http://www.revenue.ie/en/tax/it/reliefs/htb/index.html
http://www.revenue.ie/en/tax/it/reliefs/htb/htb-applicant-guide.html
