Niamh Smyth
Question:243. Deputy Niamh Smyth asked the Minister for Finance to review a case (details supplied); and if he will make a statement on the matter. [54645/23]
View answerTuesday, 12 December 2023
Questions (243)
Written answers
Help to Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive offers 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 1997.
An increase in the supply of new housing remains a central and priority aim of Government policy. For this reason, HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling.
Section 477C of the Taxes Consolidation Act 1997 (TCA) requires that HTB claimants must be first-time purchasers.
First-time purchaser, for the purposes of HTB is defined as:
"an individual who, at the time of a claim under subsection (3) has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling;"
I am advised by Revenue that there are no exceptions to the above definition of first-time purchaser for the purposes of HTB. This means that HTB is not available where one or more of the purchasers has previously purchased or built a property.
The intention behind this policy is to target the HTB relief on those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property and those who could not have availed of HTB relief previously. While I understand the difficulties faced by individuals in saving for a deposit for a home, the HTB incentive was designed as a targeted response to the challenges facing first-time purchasers in particular.
As with all tax incentive schemes, there will always be individuals who do not meet the eligibility criteria. In designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible, consistent with the overall policy intention behind the measure, and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.
In relation to taxation measures there are no other incentives or reliefs available in respect of the details provided. Queries in respect of the details of any additional housing supports should be directed to the Minister for Housing, Local Government and Heritage.