Help to Buy (HTB) is an incentive 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. Within this legislation, a first-time purchaser is defined as follows:
" 'first-time purchaser' means an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;"
The definition complements that in the Central Bank's macro-prudential rules. It should be noted that the Bank is independent in the formulation of this policy.
The intention of the HTB incentive is to target assistance towards those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property.
As such, neither my Department nor I have any plans to seek to amend the definition of first-time purchaser for the purposes of the HTB incentive.
Finally, the Deputy may be aware that I announced in Budget 2022 that a formal review of the HTB scheme would take place this year. Arrangements for same are well advanced and the review exercise is expected to commence shortly. The intention is that exercise will be fundamental in nature and that it will help inform decisions for Budget 2023 and Finance Bill 2022.
