Written Answers Nos. 125-143
125. Deputy Michael Fitzmaurice asked the Minister for Finance if he will reduce the taxes on fuel and home heating oil similar to other EU countries (details supplied) to ease the pressure on vulnerable persons and hauliers; and if he will make a statement on the matter. [53709/21]
Amharc ar fhreagra158. Deputy Pádraig O'Sullivan asked the Minister for Finance if the diesel fuel rebate for hauliers will be increased as an acknowledgement of the current price of fuel; and if he will make a statement on the matter. [54249/21]
Amharc ar fhreagraI propose to take Questions Nos. 125 and 158 together.
The final retail price of fuel is determined by a number of factors which include the costs of production, distribution, global market factors, international exchange rates, taxation, wholesale market contracts as well as individual retail pricing policies.
The current spike in energy prices arises principally from the global recovery from the Covid-19 pandemic and is being witnessed across the European Union as well as many other regions.
With regard to home heating fuels and taxation, the Deputy will be aware that a reduced rate of VAT applies to all home heating fuels. In relation to the Carbon Tax increase, I have delayed its application on home heating fuels until May 2022 to allow for the passage of the winter heating season. In addition, in line with Government policy, the additional revenues raised from the increase in carbon tax have been allocated to expenditure measures which ensure a just transition through targeted social welfare measures, investment in energy efficiency and through funding for the agricultural sector. This package is informed by ESRI research which finds that the net impact of the measures is progressive. The use of targeted welfare measures ensures that those most vulnerable to fuel poverty are protected.
For large scale diesel consumers such as those involved in the road haulage and public transport sectors, the Deputy will be aware that the Diesel Rebate Scheme was introduced by my predecessor in 2013. This Scheme offers a partial excise refund to qualifying operators based on the retail price of diesel. The scheme is designed to provide a level of support when the retail price of auto diesel is relatively high. The rebate kicks in when the price at the pumps goes above €1.23 per litre; increasing gradually to a maximum rebate of 7.5c when diesel reaches €1.43 per litre. In Budget 2020, I provided for a temporary enhancement to the scheme in light of the challenges arising from Brexit uncertainty facing the industry. This involved a doubling of the marginal rate of compensation at prices over €1.32 (VAT inclusive) up to the maximum repayment rate of 7.5 cents per litre. In recognition of the vital role that the haulage sector plays in the economy, I have maintained this enhancement to the scheme which offers more generous conditions to essential users. This measure is aimed at maintaining the competitiveness of the road haulage sector and minimising the impact for the sector and related businesses which rely on road haulage services. Passenger transport also benefits from this scheme which is available to passenger bus operators.
The Deputy may also wish to note that businesses that are registered for VAT may deduct the VAT charged to them on the purchase of business inputs, such as road diesel and other motoring costs.
126. Deputy Alan Dillon asked the Minister for Finance if consideration will be given to developing an application or website to assist with the administration of tax relief for remote workers announced as part of Budget 2022; if guidance is being developed to assist remote workers in calculating the number of days worked from home; and if he will make a statement on the matter. [54417/21]
Amharc ar fhreagraIn line with Government policy to facilitate and support remote working, on Budget Day, I announced that an income tax deduction amounting to 30% of the cost of vouched expenses for heat, electricity and internet services in respect of those incurred while working from home can be claimed by taxpayers. This measure enhances and formalises existing arrangements that are currently operated by Revenue on an administrative basis and its legislative aspects are being provided for in Finance Bill 2021.
As is the case for other tax reliefs, it is the responsibility of the taxpayer to ensure that he or she is eligible to claim the relief and to ensure that the requisite records to support his or her claim are retained.
I am advised by Revenue that its ‘myAccount’ online service already provides a facility for PAYE employees to claim the remote worker tax credit when completing an income tax return. The service calculates the credit due based on the number of days worked at home and the cost of bills incurred, which should be submitted in support of the claim. The facility will be updated in 2022 to allow the credit to be claimed in-year rather than at year end.
Revenue’s ROS system also allows self-assessed workers to make a claim for the remote worker tax credit when completing their income tax return (Form 11). Where self-assessed taxpayers claim the remote worker tax credit, it is important that they maintain the supporting records as evidence of the costs incurred.
127. Deputy Marian Harkin asked the Minister for Finance the rationale for the decrease in the flat rate of VAT; and the likely impact on farmers. [51556/21]
Amharc ar fhreagraThe Flat-Rate Farmer’s Scheme is a long-standing arrangement under VAT law that allows farmers who remain unregistered for VAT purposes to be compensated on an overall basis for the VAT charged to them on their purchases of goods and services. The Scheme is designed to reduce the administrative burden for farmers and allows them to remain outside the normal VAT system thereby avoiding the obligations of registration and returns. The Scheme is governed by EU VAT law and the level of the “flat-rate addition” allowed under the Scheme is required to be reviewed annually. In the recent Budget I announced a reduction in the rate of the flat rate farmer’s addition from 5.6% to 5.5% with effect from 1 January 2022, and this is provided for in the Finance Bill 2021 that is currently before the House.
The annual review of the Scheme is conducted by reference to macro-economic data, for the preceding three years, on agricultural production and agricultural inputs and the deductible VAT element of such inputs. The proposed reduction in the flat-rate addition to 5.5% for 2022 is a result of calculations on the basis of macro-economic data received from the Central Statistics Office (CSO) for the three-year period 2019-21. The methodology takes account of the final estimates of farming inputs, outputs and the VAT rate structures for 2019 and 2020, and a provisional forecast of agriculture inputs, outputs in 2021 as provided by the CSO, and the VAT rate structure for 2022. The method of calculation of the flat-rate addition percentage is subject to audit by the European Commission.
The reason for the annual review requirement is that, while it has been normal practice to compensate unregistered farmers in full for VAT incurred, over-compensation is not permitted under EU law. The calculations under the most recent review show that full compensation can be achieved by decreasing the rate to 5.5%, and that this will have an estimated saving to the Exchequer of €7m in 2022. Thus, the Scheme will continue to provide full compensation to farmers using the Scheme following the proposed rate change on 1 January 2022.
Finally, the Deputy may be interested to know that, as an alternative to using the Flat-Rate Farmer's Scheme, it is open to a farmer to decide to register for VAT. A farmer who does this would be entitled to claim deductibility for the actual VAT incurred on all inputs into the farming business, in accordance with the VAT rules. Of course, the farmer would also be obliged to charge normal VAT on all the businesses supplies/sales, and to account for VAT regularly and submit regular VAT returns to Revenue.
128. Deputy Aindrias Moynihan asked the Minister for Finance his views on inflation and the rising costs of living currently challenging persons; the measures being considered to address this issue; and if he will make a statement on the matter. [54358/21]
Amharc ar fhreagraWhile Covid-19 had a deflationary impact both in Ireland and internationally last year, inflation has picked up since the beginning of this year. The annual rate of HICP inflation is expected to reach 5.1 per cent in October – the highest rate since 2003. The emergence of inflationary pressures is not unique to Ireland however, with euro area inflation expected to reach 4.1 per cent in October.
The recent rise in inflation is partly explained by temporary factors, which are expected to fade over time, including ‘base effects’ associated with the ‘normalisation’ of oil prices following their collapse last spring and the imbalance between supply and demand that emerged following re-opening. This has been compounded by global supply chain disruptions, including transport bottlenecks, input shortages (e.g. semi-conductors) and labour supply shortages in some sectors. More recently, increases in wholesale energy prices have put additional upward pressure on prices, with energy inflation of 18½ per cent recorded in September.
Looking ahead, the most likely scenario is that inflation will moderate over time as temporary factors fade, demand stabilises and supply pressures ease. The Department is forecasting inflation of 2¼ per cent this year and next. However, the recent spike in wholesale energy prices means that there could already be some upside to these projections. Indeed, a scenario analysis outlining the macroeconomic implications of higher than expected inflation is set out in the Economic and Fiscal Outlook published with the Budget.
Budget 2022 contained a range of measures to protect households from the rising cost of living, including a personal income tax package worth €520m and a social welfare package of over €550m. The fuel allowance was increased by €5 per week to compensate lower income households for the additional energy costs they are likely to incur due to an increase in the carbon tax. There were also increases in the allocation of Early Learning Care and School-Age Childcare to ensure childcare prices do not rise.
Additionally, the Government is pursuing a broadly neutral budgetary policy in order to contain domestic inflationary pressures. It is crucial that we do not have an inflation ‘chain reaction’ which would damage our international cost competitiveness.
129. Deputy Steven Matthews asked the Minister for Finance the position regarding his engagement with the insurance sector specifically related to persons and businesses that operate recreational facilities and outdoor activities; if his attention has been drawn to businesses being forced to close due to prohibitive insurance costs; and if he will make a statement on the matter. [54244/21]
Amharc ar fhreagra134. Deputy Louise O'Reilly asked the Minister for Finance if his attention has been drawn to the challenges faced by organisations and businesses in the leisure, sporting and charity sectors in accessing affordable public liability insurance; and if he will make a statement on the matter. [54212/21]
Amharc ar fhreagra150. Deputy Dara Calleary asked the Minister for Finance the plans he has to address the difficulties currently arising in securing insurance for outdoor sports; and if he will make a statement on the matter. [54336/21]
Amharc ar fhreagra162. Deputy Brian Leddin asked the Minister for Finance the work that is being undertaken to assist higher risk sports such as climbing and water sports to access affordable insurance; and if he will make a statement on the matter. [54714/21]
Amharc ar fhreagraI propose to take Questions Nos. 129, 134, 150 and 162 together.
Firstly, I wish to assure the House that I am very much aware of the issues of insurance affordability and availability facing many sectors, particularly the leisure industry, which provides such an important contribution to the well-being of our society and economy in general. However, it is important to note that neither I, nor the Central Bank of Ireland have any influence over the pricing or provision of insurance products, nor can we compel any insurer operating in the Irish market to provide cover to any individual business or group, as this is a commercial matter. This position is reinforced by the EU legislative framework for insurance, the Solvency II Directive.
Nevertheless, I can assure the Deputies that the Government is committed to improving the cost and availability of insurance for all consumers, businesses and community groups. As the Deputies may be aware, the Government recently published the first Action Plan for Insurance Reform Implementation Report, which shows that work is progressing well to implement these important reforms, with 34 of the 66 actions contained within the Action Plan now complete. The Cabinet Sub-Group on Insurance Reform, which oversees the implementation of the Action Plan, is fully focussed on the delivery of its remaining objectives. Of particular importance to the leisure and sporting sectors is that the Department of Justice is bringing forward proposals to reform the Occupiers Liability Act and the Duty of Care. This is particularly relevant as it has been identified as key in helping address ‘slips, trips and falls’ issues which are very prevalent in footfall-intensive areas such as the leisure industry and activity-related pursuits.
One of the key aspects of the reform agenda which has already been delivered is the implementation of the new Personal Injuries Guidelines, which were introduced six months ahead of schedule. These have significantly lowered award levels for many categories of common injuries; early data from the Personal Injuries Assessment Board (PIAB) shows that since the commencement of the new Guidelines award levels have reduced by an average of 40%. This is an encouraging development and it is my hope that this trend will continue, thus resulting in lower insurance costs. In recent meetings with Minister of State Fleming, the main insurance firms in the Irish market have indicated that they will begin to reduce premiums in response to this development. Minister Fleming will again meet with CEOs of the major insurance providers shortly to review their ongoing response to this and other key reforms.
Finally, I would like to take this opportunity to assure the Deputies that securing a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy aim for this Government. In this regard, it is my intention to continue to work with my Government colleagues to ensure that implementation of the Action Plan will have a positive impact on the affordability and availability of insurance for individuals, businesses, community and voluntary groups across Ireland.
130. Deputy Bernard J. Durkan asked the Minister for Finance the discussions he has had with his EU colleagues in the context of addressing the issue of inflation throughout the European Union; if corrective measures are required or are likely to be required in the short to medium-term; and if he will make a statement on the matter. [54351/21]
Amharc ar fhreagra268. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he expects the Eurozone countries to address the issues such as inflation now emerging throughout the EU; and if he will make a statement on the matter. [54718/21]
Amharc ar fhreagra279. Deputy Bernard J. Durkan asked the Minister for Finance the extent to which he and his EU colleagues continue to monitor issues likely to impact on this and other European economies with particular reference to price hikes which appear to have emerged with increasing frequency; the extent to which he and his colleagues monitor their origins; and if he will make a statement on the matter. [54730/21]
Amharc ar fhreagraI propose to take Questions Nos. 130, 268 and 279 together.
At both the ECOFIN and Eurogroup meetings, my fellow Ministers and I work alongside the European Commission and the European Central Bank to take stock of the latest economic situation, including inflation developments throughout the EU.
The economic recovery throughout this year has been robust, with recent indicators pointing to strong growth. This momentum reflects our coordinated policy support, successful vaccine rollout and the boost to reforms and investment now that recovery funding has started to flow. Indeed, growth figures for the third quarter show that the euro area is nearly back to pre-pandemic levels of output.
However, the sharp rebound in global demand and persisting production and transport disruptions has brought elevated rates of inflation. The latest Eurostat estimates point to euro area annual inflation of 4.1 per cent in October. This was largely driven by energy inflation, which increased to an estimated 23.5 per cent. Pandemic-related effects, such as the impact of temporary VAT reductions, and technical factors, such as measurement issues, added further volatility.
The latest figures point to inflation, including energy prices, remaining high over the course of the year, before gradually easing next year. The ECB projects inflation to average 2.2 per cent this year and decline to rates of 1.7 and 1.5 per cent in 2022 and 2023, respectively. Both the Commission and the ECB are confident that elevated rates of inflation are linked to temporary factors, supply-side constraints and the recovery in demand as our economies reopen.
As the Deputy is aware, the ECB has an independent mandate to maintain price stability, and uses the range of monetary policy instruments to target an inflation rate of 2 per cent over the medium-term. The ECB has stated that the outlook for inflation over the medium-term remains subdued. Core inflation – which strips out energy and non-processed food inflation – was 2.1 per cent in October.
That said, energy prices can entail wide-ranging consequences for inflation and raise costs for businesses and families. In recognition of the social impacts, many Member States have introduced targeted measures to protect vulnerable households from energy poverty. In framing Budget 2022, I was conscious of these cost of living pressures and announced a range of measures including targeted social welfare initiatives.
In addition, at an EU level, the Commission has issued a Communication on Tackling Rising Energy Prices, and the matter was discussed at various Council configurations. The Communication emphasises the broad nature of the impact and policy response.
In short, my fellow Finance Ministers and I all agree that this is an important issue and that we need to continue monitoring inflation and energy price developments and the potential implications of these for our economies.
133. Deputy Jennifer Carroll MacNeill asked the Minister for Finance the assistance available to assist first-time buyers in the property market in the context of Budget 2022; the number of persons these measures will benefit; and if he will make a statement on the matter. [54341/21]
Amharc ar fhreagraIn relation to the Deputy's question regarding the assistance available to assist first-time buyers in the property market in the context of Budget 2022, I can only answer in respect of taxation measures. Direct expenditure measures are a matter for the Minister for Housing, Local Government and Heritage.
With regard to taxation measures, the Deputy will be aware of the Help to Buy (HTB) scheme. The HTB incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation.
In my recent Budget speech, I indicated that Finance Bill 2021 would include a provision extending the Help to Buy scheme for one further year to the end of 2022. Bearing in mind that HTB is a demand-led scheme which is subject to a broad range of variables, including housing completion rates and prices, it is not possible to provide a reliable estimate of the number of persons this measure will benefit. However, the data below on approved HTB claims per annum from 2017-2021 (YTD) could be considered indicative:
|
Year |
Approved HTB claims |
|
*2021 (YTD) |
5,890 |
|
2020 |
6,202 |
|
2019 |
6,603 |
|
2018 |
4,967 |
|
2017 |
4,831 |
* To 30 September 2021
I also announced in my Budget 2022 speech that the scheme will be formally reviewed in the course of 2022. My intention is that this review will be fundamental in nature.
135. Deputy Pearse Doherty asked the Minister for Finance if he will consider immediate measures to support renters in the private rental market including the introduction of a refundable tax credit equivalent to one month’s rent; and if he will make a statement on the matter. [54426/21]
Amharc ar fhreagraIn relation to the Deputy's question regarding measures to support renters in the private rental market, I can only answer in respect of taxation measures. Direct expenditure measures in this areas are a matter for the Minister for Housing, Local Government and Heritage.
The previous tax relief in respect of rent paid was abolished in Budget 2011 and it is no longer available to those that commenced renting for the first time from 8 December 2010. This followed a recommendation in the 2009 report by the Commission on Taxation that rent relief should be discontinued. The view of the independent Commission was that, in the same manner in which mortgage interest relief increases the cost of housing, rent relief increases the cost of private rented accommodation. Accordingly, the result of reintroducing this relief would very likely be a transfer of Exchequer funding directly to landlords, which would not have the intended effect of reducing the cost pressure on tenants.
At the time of its abolition, the rental tax relief cost the Exchequer up to €97m per annum, and it is likely that this figure would be even higher today were a similar scheme to be put in place. The refundable element mentioned by the Deputy would potentially add further to the cost.
Proposals for new tax incentive measures are assessed in accordance with my Department's Tax Expenditure Guidelines. These make clear that it is important that any policy proposal which involves tax expenditures should only occur in limited circumstances. In particular, they provide that a tax-based incentive should only be considered where it would be more efficient than a direct expenditure intervention.
Having regard to these considerations, the case for introducing a refundable tax credit as outlined by the Deputy is not a strong one from my Department's perspective.
Finally, and as the Deputy will be aware, the Government's 'Housing for All' plan is intended to deliver more homes of all types for people with different housing needs, including those who wish to rent at an affordable price. The Government has committed to, amongst other things, an average of 2,000 new ‘cost rental’ homes every year, with targets of rents being at least 25 per cent below market level, as well as a rent value freeze to 2024 by linking any increases in Rent Pressure Zones to inflation.
137. Deputy Michael Moynihan asked the Minister for Finance the progress made in his Department’s areas of responsibility under the Action Plan for Insurance Reform. [54344/21]
Amharc ar fhreagra140. Deputy Ruairí Ó Murchú asked the Minister for Finance the status of the work plan and actions of the Action Plan for Insurance Reform; his future plans to tackle the crisis in terms of public liability insurance; if he is satisfied with these measures to date; and if he will make a statement on the matter. [54346/21]
Amharc ar fhreagraI propose to take Questions Nos. 137 and 140 together.
The Action Plan for Insurance Reform contains 66 cross-departmental actions that aim to improve the cost and availability of cover, including public liability insurance. This reform agenda is progressing well, with the Implementation Report published last July showing that 34 of the 66 actions were complete. Key reforms to date include:
- the implementation of the Personal Injuries Guidelines;
- the establishment of the Insurance Fraud Co-ordination Office within An Garda Síochána in September; and
- the enactment of the Criminal Justice (Perjury and Related Offences) Act 2021.
In terms of my Department’s responsibilities, there have been achievements in several areas, including:
- The creation a new Office to Promote Competition in the Insurance Market;
- The expansion of the National Claims Information Database to gather data on employer and public liability insurance, and the publication of the first report on this subject; and
- The publication of the Final Report of the Central Bank’s Review of Differential Pricing in the Motor and Home Insurance Markets.
In addition, as the House will be aware, I recently secured Government approval to draft the Insurance (Miscellaneous Provisions) Bill, which aims to address further issues beyond the remit of the Action Plan. Work is continuing to progress this legislation, as well as the outstanding actions for my Department, such as establishing a databank for new market entrants.
It is my hope that the cumulative impact of the Action Plan will be an improved insurance market here, including for public liability insurance. In particular, the Personal Injuries Guidelines should lead to lower claims costs, which I expect to be reflected in reduced premiums, as well as a more attractive market for both existing insurers and potential new entrants.
In conclusion, work is ongoing to progress the remaining reforms as a matter of priority. These include further actions that should help to improve the affordability and availability of public liability insurance, such as changes to the Duty of Care, and reform of PIAB. I believe that any savings achieved from the deliver of measures contained in the Government's Action Plan must be passed on to consumers. In this regard, Minister of State Fleming will be meeting CEOs and senior officials from insurers again shortly to assess developments including the impact for consumers of the measures achieved to date.
141. Deputy Éamon Ó Cuív asked the Minister for Finance if he plans to increase the threshold on the small benefit exemption scheme on a once-off basis in 2021 in the Finance Bill to allow employers show appreciation to their staff for their commitment during Covid-19; and if he will make a statement on the matter. [54331/21]
Amharc ar fhreagraI am advised by Revenue that the small benefit exemption provides that a charge to tax will not arise where, subject to certain conditions, an employer provides a director or employee with a ‘qualifying incentive’.
A qualifying incentive may be a voucher or other tangible benefit, but it cannot exceed €500 in value. If the value of the incentive exceeds €500, then the entire amount is liable to income tax, PRSI and USC.
In addition, the incentive cannot be part of any salary sacrifice arrangement between the employee and employer. In the case of any voucher awarded, it must only be used to purchase goods or services and will not be a qualifying incentive for the purpose of this exemption if it is capable of being exchanged, in part or in full, for cash.
The legislative provisions set out that the small benefit exemption only applies to one qualifying incentive per year. Therefore, where an employer issues more than one qualifying incentive in a year then only the first of those incentives qualifies for this exemption. Any subsequent incentives issued by the employer will normally be liable to income tax, PRSI and USC irrespective of their value. However, in March 2020, Revenue concessionally agreed to waive this requirement.
For the 2020 and 2021 years of assessment the small benefit exemption may therefore apply to two qualifying incentives in each year. All other conditions relating to the small benefit exemption continue to apply in the usual manner. For example, the maximum cumulative value of the two incentives cannot exceed €500.
This concessionary measure was introduced to enable employers to recognise the efforts of their staff in light of the unprecedented impact of the COVID-19 pandemic. This concession therefore only applies to employees who have continued to work during the course of the pandemic.
Further information on the small benefit exemption is available on the Revenue website or in Tax and Duty Manual Part 05-01-01e.
I have no plans to make other changes to the small benefit exemption.
142. Deputy Pádraig O'Sullivan asked the Minister for Finance if he will review the local property tax exemptions for unfinished estates; and if he will make a statement on the matter. [54248/21]
Amharc ar fhreagraThe Finance (Local Property Tax) Act 2012 (as amended) provides for certain properties to be exempt from LPT during the current valuation period (2013 to 2021) and the next valuation period (2022 to 2025) where they meet certain qualifying conditions. However, certain exemptions will expire on 31 December 2021 and will not be available for the new valuation period. These include the exemptions for properties in unfinished housing estates; for properties purchased as a home during 2013; and for unsold properties held by builders or developers and new or unused properties purchased from a builder or developer.
The 2019 Interdepartmental Review of the LPT recommended that all of the LPT exemptions should be reviewed regularly and kept to a minimum in order to keep the base broad and minimise the impact on those paying the tax, an approach the Oireachtas Committee on Budgetary Oversight endorsed in its Scrutiny Report on the review of LPT of September 2019. In its 2019 report the LPT Review Group noted the demand level for residential property and the small number of unfinished estates remaining and concluded that there was no objective justification for continuation of the unfinished homes LPT exemption and accordingly recommended that it be allowed to lapse.
In reaching this conclusion the Group noted that, according to information provided by the Department of Housing, Local Government and Heritage, there had been a 91% reduction in the number of unfinished developments since 2010 from almost 3,000 to 256. I understand that of the 256 developments surveyed, the number of developments classified as ‘unfinished’ fell further to 124 developments nationally in a 2020 survey which is a 96% reduction from the initial number of unfinished developments surveyed in 2010. Ending this exemption helps to maintain the base for the tax and is consistent with the principle underlying the LPT that exemptions should be kept to a minimum so the rate can be kept as low as possible for those liable to pay the tax.
I would note that revenue from the LPT accrues to local authorities and supports the provision of local services. Local authorities provide a broad range of services in the public realm, which benefit the wider community. The proper functioning of these services is important for the wellbeing of every community and household. These include fire and emergency services; road maintenance and cleaning; street lighting; spatial and development planning and other similar services; regulatory and inspection functions and business support services, as well as libraries, parks, and other recreation and cultural public amenities. The benefits of these services accrue to all members of society.
I have no plans to extend any of the LPT exemptions that are due to expire on 31 December 2021 including in relation to properties in unfinished housing estates.
143. Deputy Catherine Connolly asked the Minister for Finance the status of the promised review of the help-to-buy scheme; the person or body that will carry out the review; the terms of reference of the review; the timeline for the review; and if he will make a statement on the matter. [54377/21]
Amharc ar fhreagraThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with a deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.
As the Deputy will be aware, in my recent Budget speech, I indicated that Finance Bill 2021 would include a provision extending the Help to Buy scheme for one further year to the end of 2022 and that the scheme will be formally reviewed in the course of 2022. The intention is that the review will be fundamental in nature and that it will inform decisions for Budget 2023 and Finance Bill 2022.
Questions related to who will carry out the review, its terms of reference and a timeline for completion will be determined shortly.
