Dáil Éireann Debate, Wednesday - 22 June 2022
20. Deputy Neale Richmond asked the Minister for Finance if he has any plans to view separated and divorced persons as first-time buyers for the help to buy scheme even if they have previously owned a home as is the case for the local authority schemes; and if he will make a statement on the matter. [32883/22]
View answerHelp to Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive offers a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in Section 477C of the Taxes Consolidation Act 1997 (S447C TCA).
Applicants for HTB must be first-time purchasers, a term defined in S447C TCA 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 intention behind this policy is to target the HTB scheme to help those who have not had the opportunity to build up equity in another property which could be used to purchase a second or subsequent property.
Although it should be noted that the Central Bank of Ireland is independent in the formulation of its policies, the definition of first-time purchaser under HTB complements that in the Central Bank's macro-prudential rules. This includes circumstances where there is more than one person involved in the purchase or building of a new home. Under the Central Bank’s rules, where the borrower of a housing loan is more than one person and one or more of those persons has availed of a housing loan previously then none of those persons is considered a first-time buyer.
As such, I do not intend to amend the definition of first-time purchaser for the purposes of the HTB scheme to specifically include separated and divorced persons who have previously owned a home. Also of relevance is that a formal review of the HTB scheme is currently underway and is expected to be completed shortly. The intention is that the exercise will help inform decisions for Budget 2023 and Finance Bill 2022, having regard to the sound management of the public finances. While decisions in relation to HTB in 2023 have yet to be taken, I do not expect my position in relation to the definition of first-time purchaser to alter.
