Dáil Éireann Debate, Thursday - 10 November 2016
80. Deputy Michael D'Arcy asked the Minister for Finance if, in the circumstances in which a person has claimed tax back under the incapacitated tax scheme, the person can also apply via the HTB for an additional tax credit; and if he will make a statement on the matter. [34159/16]
Amharc ar fhreagraI assume the Deputy is referring to the provision in section 267 of the Taxes Consolidation Act (TCA) 1997 in relation to a repayment of Deposit Interest Retention Tax (DIRT) in the case of an incapacitated individual and whether such an individual may also be entitled to avail of the Help to Buy incentive which is provided for in section 8 of the recently published Finance Bill. However, it is not fully clear as to which part of the tax code as it relates to incapacitated individuals, the Deputy refers.
The Help to Buy incentive, as proposed, will provide for a refund of income tax, including DIRT, paid in any or all of the 4 tax years preceding the year in which an individual makes an application under the incentive. This refund will be used to help fund the purchase or construction of a new house or apartment.
An individual who otherwise satisfies the conditions necessary to avail of Help to Buy will not be precluded from making a claim for the relief, as a consequence of having availed of a refund of DIRT under Section 267. However, any amounts of DIRT already refunded under section 267 will not be available for inclusion in the Help to Buy amount, but if such an individual has paid sufficient income tax in the relevant four years he or she may be still in a position to avail of the maximum amount of relief available under the Help to Buy scheme.
Alternatively, the Deputy could be referring to section 465 of the TCA, with regard to the incapacitated child tax credit. In this case, the Deputy should be aware that if such an individual has paid sufficient income tax (including DIRT) in the relevant four years, after deductions and credits (including the incapacitated child tax credit), he or she may be in a position to avail of the maximum amount available under Help to Buy.
As a general rule, individuals cannot reclaim more income tax than they have paid through the cumulative use of various tax relief and credits. Should the Deputy wish to pose a more specific query, I will be in a position to provide a more definitive response.
