Thomas Gould
Ceist:398. Deputy Thomas Gould asked the Minister for Finance if a person is eligible to apply for the help to buy scheme as a single applicant if they share tax credits with a spouse. [43492/22]
Amharc ar fhreagraThursday, 8 September 2022
Ceisteanna (398)
Freagraí scríofa
The 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 of 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 of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section. The main conditions include that the claimant is a first-time purchaser, that the claimant has a qualifying loan on the property in question and that the claimant has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. Also, the new property must be occupied as the sole or main residence of a first-time purchaser.
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.
An application for the HTB scheme should be made via Revenue’s online platforms (MyAccount or ROS), and an application may be submitted by an individual or a group. A group is made up of one or more persons, including couples in a marriage or civil partnership. In order for a group claim to be successful, all members of the group must satisfy the conditions of the scheme – including the first-time purchaser condition, and all parties to the contract must be included in the HTB application.
The sharing of tax credits with a spouse in cases where spouses are jointly or separately assessed, will not affect a person’s eligibility for HTB, on the basis that all conditions of the HTB scheme are met by the applicant. However, the individual HTB applicant is only entitled to claim back any tax that is actually paid by him or her, not what is paid by their spouse.
I am advised that Revenue’s Tax and Duty Manual Part 15-01-46 outlines further guidance on the conditions and operation of the HTB scheme.