Dáil Éireann Debate, Tuesday - 3 October 2023
251. Deputy Thomas Pringle asked the Minister for Finance if the term “qualifying residence” referenced in the definition of “self-build qualifying residence” in section 477C of the Taxes Consolidation Act (TCA) 1997 (details supplied) refers to, and has the same meaning, as the previous definition of “qualifying residence” in section 447C; and if he will make a statement on the matter. [42455/23]
View answer252. Deputy Thomas Pringle asked the Minister for Finance his views on a taxation matter (details supplied); and if he will make a statement on the matter. [42457/23]
View answerI propose to take Questions Nos. 251 and 252 together.
I am advised by Revenue that the Help to Buy (“HTB”) incentive, is a scheme to assist first-time purchasers with the deposit they require to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997. Section 477C(1) provides definitions for “qualifying residence” and “self-build qualifying residence”. With regards to your specific question of whether the definition of “qualifying residence” applies to the definition of “self-build qualifying residence”, the answer is yes, as the conditions pertaining to a “qualifying residence” also apply to a “self-build qualifying residence”. Such conditions include that the new property is occupied as the sole or main residence of a first-time purchaser, the property must be a new building which was not, at any time, used or suitable for use as a dwelling and the purchase value of the property must not exceed €500,000. The definition of “self-build qualifying residence” contains the additional requirement that the property is built either directly or indirectly by the first-time purchaser on his or her own behalf.
In order to be eligible to make a HTB claim under section 477C(3), an applicant must either:
(i) enter into a contract with a qualifying contractor for the purchase of a new house or apartment, or
(ii) make the first draw down of the mortgage in the case of a self-build property.
Based on the limited information provided, it is not possible to give a definitive view as to whether or not the unfinished property would come within the definition of “self-build qualifying residence”.
If the Deputy wishes to provide further information, my officials could refer it to Revenue for reply. Alternatively, if the query is from a constituent, the individual concerned can contact Revenue directly, via MyEnquiries.
