Dáil Éireann Debate, Wednesday - 19 January 2022
327. Deputy Paul Kehoe asked the Minister for Finance the options that are available to an applicant to the help-to-buy scheme who disputes the valuation provided by the lender; and if he will make a statement on the matter. [1260/22]
View answerThe 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 of the Taxes Consolidation Act outlines the definitions and conditions that apply to the Help to Buy scheme.
One such condition is that a qualifying first time buyer must take out a loan in an amount equal to at least 70% of either the purchase price of the property in the case of a purchased house, or the value of the property in the case of a self-build house. The valuation of a self-build is as approved by the lender, determined in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation as being the site cost plus the cost of construction.
Revenue does not have discretion to vary the conditions for qualification for relief under the HTB scheme. As such, where the minimum loan value of 70% is not achieved, the conditions of the scheme are not met, and the relief cannot be granted.
I am advised by the Revenue Commissioners that where the valuation of the property is in dispute, the determination of the valuation of the property is not a matter for Revenue. This is a matter between the purchaser and the lender.
