Gerald Nash
Question:344. Deputy Ged Nash asked the Minister for Finance the estimated saving to the Exchequer that would accrue from abolishing the help to buy scheme; and if he will make a statement on the matter. [39898/21]
View answerTuesday, 27 July 2021
Questions (344, 450)
Pearse Doherty
Question:450. Deputy Pearse Doherty asked the Minister for Finance the estimated revenue that would be generated in 2022 by removing the help to buy scheme. [41359/21]
View answerWritten answers
I propose to take Questions Nos. 344 and 450 together.
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.
Bearing in mind that HTB is a demand-led scheme which is subject to a broad range of variables, including housing completion rates and prices, it is not possible to provide a reliable estimate of the savings that would arise from abolition of the scheme.
According to Revenue data, as of end June 2021, since the inception of the scheme the estimated total value of approved HTB claims to date is in the order of €453 million.
The table below summarises the value of approved HTB claims for each year since the inception of the scheme until end-June 2021.
|
Year |
2017* |
2018 |
2019 |
2020 |
2021 (Year to end June) |
Total |
|
Value (€m) |
69 |
73 |
102 |
126 |
83 |
453 |
*The 2017 figure includes approved retrospective claims made in 2017 in respect of the period 19 July 2016 to end 2016, as provided for in the relevant legislation.