Dáil Éireann Debate, Thursday - 11 April 2024
105. Deputy Brendan Griffin asked the Minister for Finance if recipients of the croí cónaithe home renovation grant scheme who are first-time homeowners will also be eligible for the help-to-buy-scheme, given that a new housing unit is being delivered but with the relative increased expense of renovation versus greenfield development in some cases; and if he will make a statement on the matter. [15696/24]
View answerThe Help to Buy (HTB) scheme assists first-time purchasers with the deposit they need to buy or build a new house or apartment. The scheme provides for a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to certain conditions being met.
One of the key policy aims of the HTB scheme is to incentivise the construction of additional housing in the State. Reflecting this, HTB is only available in connection with the purchase or self-build of a “qualifying residence” which is defined in section 477C of the Taxes Consolidation Act 1997 as a “new building which was not, at any time, used or suitable for use as a dwelling”.
I am advised by Revenue that the renovation or refurbishment of old houses to either upgrade or reinstate them for habitation, do not qualify for HTB. There is a limited exception to this, where first-time buyers purchase a site containing a derelict house which they plan to demolish, in whole or in part, with the intention of building a new house. In addition, commercial properties which have never been used as a dwelling and are being converted for residential use may qualify for HTB relief.
Responsibility for the Croí Cónaithe Vacant Property Refurbishment Grant scheme rests with the Department of Housing, Local Government and Heritage. It is my understanding that grants under the scheme are provided to benefit those who wish to turn a formerly vacant house or building into their principal private residence.
Recipients of the Croí Cónaithe Vacant Property Refurbishment Grant who are first-time purchasers may be eligible for the HTB scheme in the limited circumstances outlined above. First-time buyers intending to undertake such purchases are advised to contact Revenue via MyEnquiries outlining the specific facts and circumstances of their case to establish whether they qualify for HTB.
