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Mortgage Data

Dáil Éireann Debate, Wednesday - 13 January 2021

Wednesday, 13 January 2021

Questions (233)

Niamh Smyth

Question:

233. Deputy Niamh Smyth asked the Minister for Finance if he will review correspondence (details supplied); and if he will make a statement on the matter. [45177/20]

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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.

Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming s/he meets various conditions specified in the section, including that s/he is a first-time purchaser and that he or she has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made.

In particular, the legislation provides that where applicants:

(i) enter into a contract for the purchase of a new house or apartment, or

(ii) make the first draw down of the mortgage in the case of a self-build property,

during the qualifying period of 19 July 2016 to 31 December 2021, they may avail of the HTB scheme, subject to all other conditions being satisfied.

I am advised by Revenue that, based on the details provided, as the first tranche of the mortgage for the self-build property was drawn down before the commencement of the qualifying period 19 July 2016 (i.e. drawn down in May 2016), HTB relief would not be available as the conditions of the scheme are not satisfied. As with all time bound reliefs, there will always be those who just miss out on qualification as is the case unfortunately in the current instance. 

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