Dáil Éireann Debate, Wednesday - 13 May 2020
55. Deputy Bríd Smith asked the Minister for Finance if persons that had previously a history of having purchased a home but that have since relinquished a holding in the property with no financial gain will be considered for the help-to-buy scheme; and if he will make a statement on the matter. [4165/20]
Amharc ar fhreagraThe Help-to-Buy incentive, introduced with effect from 1 January 2017, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.
Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the help to buy scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section, including that he or she is a first-time purchaser and that he or she has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. The obligations apply to each party, where there is more than one party to a claim.
The definition of “first-time purchaser” for the purposes of the scheme is an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling. The “qualifying residence” must be occupied as the sole or main residence of the first-time purchaser.
I am advised by Revenue that In the circumstances outlined by the Deputy, where a person has previously legally purchased a home as a “first-time purchaser”, but has since relinquished a holding in the property with no financial gain, he or she will no longer be considered for the help-to-buy scheme given that it is a prerequisite for qualification for the relief that the taxpayer be a first-time purchaser.
As the Deputy will appreciate, Revenue does not have discretion to vary the conditions set down by the Oireachtas for qualification for relief under the Help-to-Buy scheme.
