Pádraig O'Sullivan
Question:298. Deputy Pádraig O'Sullivan asked the Minister for Finance if a person (details supplied) will qualify for the help-to-buy-scheme; and if he will make a statement on the matter. [63211/21]
View answerWednesday, 19 January 2022
Questions (298)
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. The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997.
I am advised by Revenue as follows:
In addition to requiring that the new property is occupied as the sole or main residence of a first-time purchaser, the legislation also defines a ‘qualifying residence’ for the purposes of the scheme. 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. Thus, for a property to qualify for the HTB scheme, it must not previously, at any time, have been used as a dwelling, or been suitable for use as a dwelling.
Revenue Tax and Duty Manual 15-01-46 outlines further guidance on what would be considered a “new” house.
As regards the specific case outlined in the Deputy’s question, given that the house was completed in 2012 and has been occupied for many years, albeit by the ultimate purchaser, the house would not be considered a qualifying residence for the purposes of HTB as it was previously suitable for use as a dwelling, and was in fact so used. In such circumstances, HTB relief would not be available.