Richard Boyd Barrett
Question:224. Deputy Richard Boyd Barrett asked the Minister for Finance the full-year cost of abolishing the help-to-buy scheme; and if he will make a statement on the matter. [31010/23]
View answerTuesday, 27 June 2023
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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 1997 outlines the definitions and conditions that apply to the HTB scheme. I am advised by Revenue that the total value of claims under the HTB scheme for 2022, including both approved and pending claims is €180.2m, based on the claim-stage start date of the application.
For the purposes of the Budget 2023 documentation, a figure of €175 million was estimated as the cost of the scheme for 2023 and again for 2024. This estimate was derived by my Department using published Revenue annual statistics for the scheme for 2021 and the end-August 2022 monthly statistics. 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 latest actual costs to-date and the above estimated 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 2024.