Skip to main content
Normal View

Housing Schemes

Dáil Éireann Debate, Thursday - 10 February 2022

Thursday, 10 February 2022

Questions (240)

Gerald Nash

Question:

240. Deputy Ged Nash asked the Minister for Finance when his Department plans to commence a formal review of the help-to-buy incentive to ensure it is appropriately calibrated in order that it is delivered in time for Budget 2023; and if he will make a statement on the matter. [7306/22]

View answer

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 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.

The Government is committed, through the Housing for All strategy, to achieving progress on housing as a matter of utmost priority.

The strategy, published last September, includes the following commitment:

"The Help to Buy Incentive is due to end on 31 December 2021 and the Minister for Finance will consider an extension to the timeline in the context of Budget 2022. The role of the Help to Buy incentive will also be reviewed using the Tax Strategy Group mechanism with the aim of ensuring that it is appropriately calibrated in the context of other measures contained in Housing for All."

The associated Tax Strategy Group (TSG) review paper concluded that, should a decision be taken to extend Help to Buy, there would be a strong case for commissioning a further formal review of the efficiency and effectiveness of the scheme having regard to matters such as cost, the changing policy context in which the relief operates, the coming on stream of other non-tax Housing for All measures that have similar objectives, as well as the requirements of my Department's tax expenditure guidelines.

I accepted the thrust of the TSG recommendations and, in my Budget 2022 address, I announced an extension of HTB for a further year until the end of 2022 and also that a formal review of the scheme would take place in 2022. The intention is that the HTB extension will allow time for the other HFA measures with similar policy objectives to be put in place in the period ahead.

It is also the intention that the review will be fundamental in nature, and that it will help inform decisions for Budget 2023 and Finance Bill 2022.

Issues related to the terms of reference and a specific timeline for completion as well as the question of who will carry out the review are being considered by my Department at present and the matter is expected to be moved forward shortly.

Top
Share