Ged Nash
Question:151. Deputy Ged Nash asked the Minister for Finance the estimated saving to the Exchequer that would accrue from abolishing the help to buy scheme; and if he will make a statement on the matter. [38656/22]
View answerWednesday, 13 July 2022
Questions (151)
Written answers
The Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a 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.
I am advised by Revenue that the total value of approved and pending Help To Buy (HTB) claims for 2021 is €193.8m. The equivalent figure for the period from 1 January to 30 June 2022 is €94.4m.
Bearing in mind that HTB is a demand-led scheme which is subject to a broad range of variables, including housing completion rates and prices, it is not possible to provide a reliable estimate of the savings that would arise from abolition of the scheme. However, although it does not take account of any potential changes in taxpayer behaviour, the above costs can be assumed to be broadly indicative of the annual saving if the HTB scheme was abolished.
The Deputy may wish to note that work by external consultants, Mazars, on the review of HTB is nearing completion. The outcome of this review will help to inform decisions on the future of the scheme beyond its current sunset date of 31 December 2022. However, this is a matter that will fall to be considered by Government in the context of the Budget 2023 process and it would not be appropriate for me to offer comment further at this time.