Tuesday, 9 April 2019

Questions (144)

Shane Cassells

Question:

144. Deputy Shane Cassells asked the Minister for Finance if persons who are eligible for the Rebuilding Ireland home loan scheme for the purchase of a new-build home are not eligible for the help-to-buy scheme; and if he will make a statement on the matter. [16315/19]

View answer

Written answers (Question to Finance)

Section 477C of the Taxes Consolidation Act 1997 provides for the Help to Buy incentive (HTB), which came into effect on 19 July 2016. A number of conditions must be satisfied in order for an individual to be eligible to avail of the incentive.

To claim HTB, you must:

- be a first-time buyer;

- buy or build a new property between 19 July 2016 and 31 December 2019;

- If you are buying the property, you must have signed a contract to buy the property in that period.

- If you are self-building, you must have drawn down the first part of the mortgage in that period.

- live in the property as your main home for five years after you buy or build it; and

- be tax compliant, or if you are self-assessed, you must also have tax clearance.

Other conditions include:

- the contractor you are purchasing your home from must be approved by Revenue;

- the purchase value of your home must not exceed €500,000;

- you must take out your mortgage on the property with a qualifying lender, the definition of which includes a local authority;

- The loan must be used only for buying or building the property; and

- the loan must be at least 70% of the purchase value of the property.

While the Rebuilding Ireland Home Loan scheme is primarily a matter for the Minister for Housing, Planning and Local Government, I understand that the loans in question are provided by the Local Authorities which, for the purposes of the HTB, are included within the definition of a 'qualifying lender'.

Therefore, an individual eligible for the Rebuilding Ireland Home Loan scheme may also be eligible to avail of the HTB relief, provided the conditions set out above are met.

Further information in relation to the application and claim process for HTB are available on the Revenue website at:

https://www.revenue.ie/en/property/help-to-buy-incentive/how-do-you-apply-for-help-to-buy-htb.aspx.