Dáil Éireann Debate, Tuesday - 22 November 2016
162. Deputy Micheál Martin asked the Minister for Finance the reason it was decided to commence the help-to-buy scheme on 19 July 2016 in view of the fact that the tax year begins on 1 January; and if he will make a statement on the matter. [35879/16]
Amharc ar fhreagraThe commencement date for the Help to Buy scheme of 19 July 2016 was chosen as it was the date of the launch of 'Rebuilding Ireland - Action Plan for Housing and Homelessness', in which the development of such a scheme for inclusion in the Budget was initially announced. The intention to backdate this tax incentive to this date was announced at that time with a view to avoiding any potential interruption in house sales, by purchasers who may otherwise have deferred purchases, pending the commencement of the incentive.
It is not unusual for legislative changes to the tax code to come into effect on dates other than the 1st of January. This can occur when for example, State Aid approval is received from the European Commission, or to commence a change with immediate effect, such as certain Budget day changes. In this case, the date of the commencement was the date when individuals first would have become aware that the Government would be bringing forward an incentive, and it could have affected purchasing decisions.
