The Deputy will be aware that the Help to Buy incentive is not a broad based relief available for the purchase of any home by any buyer. It is instead a targeted response that is aimed at first-time buyers, buying (or building) new residences. This targeting is designed to help encourage the building of new homes, thereby increasing supply, by turning notional demand into real demand. By restricting this initiative solely to new dwellings and new self builds, it is anticipated that the resulting increase in demand for affordable new build homes should encourage the construction industry to provide for an additional supply of such properties.
In line with these policy objectives, the Help to Buy scheme is not available for extensions to old houses in the manner in which the Deputy describes.
The legislation under Section 477C(1) of the Taxes Consolidation Act 1997, defines a qualifying residence as:
- a new building which was not, at any time, used, or suitable for use, as a dwelling, or
- a building which was not, at any time, in whole or in part, used, or suitable for use, as a dwelling and which has been converted for use as a dwelling.
On the basis of the information provided in the Question, it is the view of the Revenue Commissioners that the extended property does not qualify for the incentive as the legislation requires that the building was not, in whole or in part, used, or suitable for use, as a dwelling.