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Help-To-Buy Scheme

Dáil Éireann Debate, Wednesday - 3 March 2021

Wednesday, 3 March 2021

Questions (225)

Michael Healy-Rae

Question:

225. Deputy Michael Healy-Rae asked the Minister for Finance his views on matters raised in correspondence (details supplied) regarding the help-to-buy scheme; and if he will make a statement on the matter. [12010/21]

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Written answers

The Help to Buy (HTB) incentive was introduced in 2017. The measure is currently scheduled to expire on 31 December 2021.

HTB 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. An increase in the supply of new housing remains a priority aim of Government policy.

The scheme is designed to stimulate the supply of new houses in the housing market and to assist first-time buyers in accumulating a deposit for a new home. In order to further help meet these goals, I announced an enhancement to the existing scheme with effect from 23 July last for the remainder of 2020 as part of the July Stimulus Package. The legislation that gives effect to this is set out in the Financial Provisions (Covid-19) (No.2) Act 2020. The Finance Act 2020 further extended the period of application of the enhanced levels of support until 31 December 2021.

As regards the negative impact of Covid-19 related restrictions on employment and the ability to qualify for HTB, the Deputy may wish to be aware that Revenue have advised as follows. Where an underpayment of tax arises for the year 2020 as a result of amounts received under the TWSS or PUP, Revenue will allow a claim for HTB relief for the amount of income tax paid for 2020 and will not require the outstanding tax liability to be paid in advance where the underpayment of tax is due to be collected from 2022 by reducing the claimant’s tax credits. This will only apply where all other conditions of the HTB scheme are satisfied.

In relation to the issue of extending HTB, the question of the future of HTB support beyond its current expiry date is a matter that will be considered in due course in the context of Budget 2022 and the subsequent Finance Bill.

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