Richard Boyd Barrett
Question:433. Deputy Richard Boyd Barrett asked the Minister for Finance the estimated full-year cost of abolishing the help-to-buy-scheme; and if he will make a statement on the matter. [41604/22]
View answerTuesday, 26 July 2022
Questions (433)
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 Section 477C of the Taxes Consolidation Act (TCA) 1997.
HTB is a demand-led tax expenditure which is subject to a broad range of variables, including housing completion rates and prices. The estimated cost of HTB in 2023 would be dependent on the nature and extent of the scheme in 2023, about which decisions have yet to be taken. As such, it is not possible to provide a reliable estimate of the savings that would arise from abolition of the scheme.
However, I am advised by Revenue that the total value of approved HTB claims that commenced claim stage in 2021 was €192 million, while the value of approved claims commenced in 2022 to-date is €93 million. 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.
At present, HTB is subject to a sunset clause with an associated date of 31 December 2022. Accordingly, there is no provision in the current budgetary arithmetic in respect of the cost of the measure beyond end-December 2022.
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. 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.