Patrick O'Donovan
Question:198. Deputy Patrick O'Donovan asked the Minister for Finance his plans to include existing owners of derelict properties in the help-to-buy scheme; and if he will make a statement on the matter. [43117/20]
View answerTuesday, 15 December 2020
Questions (198)
Written answers
The Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
I am advised by Revenue as follows:
In order for an applicant to qualify for the HTB scheme they must be a first time purchaser and the property must be a qualifying residence, as defined in section 477C of the Taxes Consolidation Act 1997 (TCA), as well as satisfying the conditions outlined in section 477C TCA.
Section 477C TCA provides a definition of a first-time purchaser for the purposes of the HTB scheme. A first-time purchaser is an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling.
In a case where an individual who received a gift of or inherited a house previously, the individual may still be considered a first-time buyer for the purposes of the HTB scheme subject to all other conditions being satisfied, on the basis that they have not previously purchased a dwelling, as the wording of the legislation provides.
Unless the existing owner received the house as a gift or inherited the property, they would not be considered a “first time purchaser”.
Section 477C also defines a qualifying residence. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for HTB. In the circumstances where the house was previously used as a dwelling but knocked down and rebuilt, then it is “new”.
The Revenue Tax and Duty manual Part 15-01-
46 Help to Buy outlines further guidance on the scheme.
I have no plans to change these terms of the scheme.