Dáil Éireann Debate, Tuesday - 21 March 2017
228. Deputy Niamh Smyth asked the Minister for Finance if he will review the case of persons (details supplied); if they are eligible under the help-to-buy scheme; if not, the reasons; and if he will make a statement on the matter. [13678/17]
Amharc ar fhreagraThe legislative provisions for the Help to Buy incentive are set out in section 477C of the Taxes Consolidation Act 1997 (TCA), as inserted by section 9 of the Finance Act 2016. The incentive applies for the period from 19 July 2016 to 31 December 2019.
The details supplied by the Deputy concern a couple who are self-building their home and who drew down the first tranche of the relevant mortgage in March 2016, before the announcement of the Help to Buy incentive. In this instance the relevant definitions contained in the legislation are 'qualifying period' and 'qualifying residence'.
A 'qualifying period' means the period commencing on 19 July 2016 and ending on 31 December 2019.
A 'qualifying residence' is:-
- a new building which was not, at any time, used, or suitable for use, as a dwelling or a building converted for use as a dwelling,
- which is occupied as the sole or main residence of a first-time purchaser (or self-builder),
- where the purchase value is not greater than €600,000 in the period from 19 July to 31 December 2016, and €500,000 in the period from 1 January 2017 to 31 December 2019, and
- in the period specified, a contract is entered into between a claimant and [...] a qualifying contractor or, the first tranche of a qualifying loan [...] is drawn down by a claimant.
The details supplied by the Deputy suggest that while the couple appear to meet some of the eligibility criteria for the Help to Buy refund, they do not meet the critical element regarding the date, as the first tranche of their mortgage was drawn down before the qualifying period commenced. Thus there is no entitlement to a refund in the circumstances described.
One of the primary policy aims of the incentive is to assist those struggling to save for the deposit required in purchasing a home. Individuals who purchased new homes before the announcement of the incentive did not need the assistance of the State to fund the required deposit. Such individuals made their purchasing decisions on the basis of the information available to them at the time of purchase, and could not have expected a subsequently introduced tax relief to also be available to them. Similarly, those who commenced the drawdown of agreed mortgages in respect of self build properties before 19th of July, could also not have expected a subsequently introduced tax relief to be available to them.
