Dáil Éireann Debate, Thursday - 13 July 2023
487. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage if he has examined the interplay of the help-to-buy scheme with the first-home equity scheme which can operate to prevent applicants drawing upon the full value of each scheme; and if he will make a statement on the matter. [35372/23]
View answerThe First Home Scheme, launched on 7 July 2022, supports first-time buyers in purchasing new houses and apartments in the private market through the use of an equity share model. Full details of the First Home Scheme are available at: www.firsthomescheme.ie.
The Help to Buy (HTB) incentive is a scheme 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 paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme. In order to claim Help to Buy (HTB), an applicant must take out a mortgage on the property with a qualifying lender, with the mortgage being at least 70% of the purchase value of the property or approved valuation in the case of a self-build. Section 477C of the Taxes Consolidation Act 1997 defines “purchase value” of the property. It defines purchase value in relation to the open market value of the home. The HTB scheme is administered by the Department of Finance and Revenue.
My Department has had engagement with the Department of Finance in relation to the above definition and this engagement is on-going.
