Dáil Éireann Debate, Tuesday - 21 July 2020
184. Deputy Matt Carthy asked the Minister for Finance his plans to amend the help-to-buy scheme for persons who build their own home in order that the reckonable limits apply to the cost of the home rather than that LTV rate in view of the fact that the current conditions discriminate against rural dwellers who build on their own land; and if he will make a statement on the matter. [17027/20]
Amharc ar fhreagraS.477C of the Taxes Consolidation Act sets out the requirements of the Help to Buy incentive. It provides that a qualifying first time buyer must take out a loan in an amount equal to at least 70% of either the purchase price of the property in the case of a purchased house or the value of the property in the case of a self-build house. The valuation of a self-build is as approved by the lender as determined in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation as being the site cost plus the cost of construction.
My Department's tax expenditure guidelines require that tax incentives must seek to avoid deadweight. It is my view that extending the incentive to those first-time buyers whose loan to value is below 70% would not be consistent with that requirement.
