Written Answers Nos. 169-176
169. Deputy Barry Ward asked the Minister for Finance the position regarding the review of the help to buy scheme as set out in the programme for Government; if the level of tax relief is one of the aspects to be put under review; and if he will make a statement on the matter. [6887/25]
Amharc ar fhreagraThe Help to Buy (HTB) incentive 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.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or,
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
An increase in the supply of new housing remains a central and priority aim of Government policy. For this reason, HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
Based on the latest available data (30 November 2024), the HTB scheme has supported almost 52,000 individuals or couples to buy their own home.
The Programme for Government commits to the retention and revision of the HTB scheme. All decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time and having regard to the sound management of the public finances.
170. Deputy Malcolm Byrne asked the Minister for Finance for an update on incentives for unscripted production in the film and television industry. [6919/25]
Amharc ar fhreagraAs part of Budget 2025, two new incentives were introduced for the audio-visual sector.
The section 481 film tax credit has been amended to provide for an uplift of 8% to the existing rate of 32% for small to medium sized productions with a maximum qualifying expenditure of €20 million, and a new audio-visual credit has also been introduced for Unscripted Productions.
The Tax Credit for Unscripted Productions provides a corporation tax credit for expenditure incurred on the development of unscripted programmes and will be available at a rate of 20% of certain production expenditure up to a maximum limit of €15 million per project.
This new incentive is designed to support the expression of Irish and European culture in the fast-growing unscripted sector and to grow Ireland’s audio-visual industry by attracting international investment as well as encouraging increased activity in the domestic space.
Both measures have been introduced subject to commencement orders, pending receipt of State aid approval from the European Commission. The Commission has been notified of both measures and the process of obtaining approval is now underway. It is not possible to provide an indicative timeline as to when a decision will be made in relation to both measures as this will depend on engagement with the Commission.
171. Deputy Emer Currie asked the Minister for Finance to reconsider the rule under help to buy that eligibility of a self-build for funding is based on the value of the house post build rather than the cost to purchase and renovate the home. [7005/25]
Amharc ar fhreagraThe Help to Buy (“HTB”) incentive is a scheme to assist first-time purchasers with the deposit they require 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.
Based on the latest available data (30 November 2024), the HTB scheme has supported almost 52,000 individuals or couples to buy their own home.
The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997 and states that in order to be eligible to make a HTB claim, an applicant must either have:
(i) entered into a contract with a qualifying contractor for the purchase of a qualifying residence, that is not a self-build qualifying residence, or
(ii) draw down the first tranche of a qualifying loan in respect of a self-build qualifying residence
A “self-build qualifying residence” is defined as a qualifying residence built, directly or indirectly, by a first-time purchaser on his or her own behalf. A number of HTB eligibility criteria are based on the “approved valuation” of a “self-build qualifying residence”.
Section 477C(1) defines an “approved valuation” as the valuation of a residence approved by the qualifying lender at the time the qualifying loan is entered into. As such, specific HTB eligibility criteria are based on the cost of funding a ”self-build qualifying residence” at the time the associated mortgage is entered in to and not the market value of the residence post-completion.
In addition to other key criteria, to be defined as a qualifying residence, a “self-build qualifying residence” must have an “approved valuation” not exceeding €500,000. Furthermore, the qualifying loan used to build the property must a be minimum of 70% of the “approved valuation” of the property.
The Programme for Government commits to the retention and revision of the HTB scheme. All decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time and having regard to the sound management of the public finances.
172. Deputy Barry Ward asked the Minister for Finance if any consideration has been given to carrying out a review of the help-to-buy scheme that would allow couples (details supplied) to qualify for supports; and if he will make a statement on the matter. [7049/25]
Amharc ar fhreagraThe Help to Buy (HTB) incentive 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.
The legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997 and outlines the definitions and conditions that apply to the HTB scheme.
Section 477C (6) provides that prior to making a claim, an individual must make an application confirming he or she meets various conditions specified in the legislation, including that he or she is a first-time purchaser.
Section 477C (1) defines the term “first-time purchaser” for the purposes of the HTB scheme as being “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”.
Furthermore, the loan-to-value ratio test provided for by section 477C(11) and the definition of a qualifying loan both provide that, where more than one individual is involved in purchasing or building a qualifying residence, all of the individuals must be first-time buyers.
The loan-to-value ratio in respect of a HTB claim shall not be less than 70 per cent and is calculated with reference to the “qualifying loan” amount associated with the purchase of the qualifying residence or self-build qualifying residence. Section 477C(1) states that a “qualifying loan” is a loan which “is entered into solely between a first-time purchaser and a qualifying lender (but this does not exclude a loan to which a guarantor is a party).”
In the circumstances of the details provided, where a married couple obtain a mortgage in relation to a qualifying residence or a qualifying self-build residence, it is not possible under current legislation for a spouse who fulfils the definition of a first time buyer to claim HTB where the other spouse is not a first time buyer.
However, there is an exception to this criteria where a first-time buyer is required to have a guarantor on the mortgage (who is not a first-time buyer), the first-time buyer will still be eligible for HTB where all the other conditions are met.
173. Deputy John Lahart asked the Minister for Finance if he and his departmental officials have engaged with the Revenue Commissioners on the practical implementation of the new national E-liquid products tax, EPT, as set out in Part 2 of Finance Act 2024; the rationale behind the proposed uses of self-declaration as opposed to the use of tax stamps which are issued by the Revenue Commissioners and operate under existing robust legislation; if he, his Department or the Revenue Commissioners have examined the operation of self-declaration systems in other countries where it created a surge in illicit products on the market; if he, the Department or the Revenue Commissioner have estimated the likely loss of taxes due to the absence of tax stamps; and if he will make a statement on the matter. [6835/25]
Amharc ar fhreagraIn October 2023 as part of the budget 2024 speech, the then Minister for Finance announced his intention to introduce a domestic tax on e-cigarettes and vaping products in budget 2025 and he instructed his Department to work with Revenue on the development of a suitable tax. Following in-depth engagement between the Department of Finance and Revenue on the design of such a measure, proposals were approved by the Minister for E-Liquid Products Tax (EPT) - a new tax that will apply to the liquids used in e-cigarettes, including refill cartridges for refillable devices.
Legislation for EPT was enacted in Finance Act 2024 and is subject to commencement by Ministerial Order. I expect to commence EPT later this year. This allows Revenue the necessary time to set up the information technology, administrative, operational and compliance systems and processes required to administer and collect the new tax.
Under the new law, EPT will apply to both nicotine-containing and non-nicotine-containing e-liquid products. Similar to the approach for other national excises, the taxing point will be the first supply of e-liquid product in the State and the tax will follow Revenue’s standard model of self-assessment. Suppliers of e-liquid product will be required to register with Revenue in advance of making a first supply of e-liquid products in the State. These suppliers will be liable to account for and pay the tax.
The taxation of e-cigarettes and novel products, including e-liquids, is expected to be addressed at EU level through a revision of the Tobacco Tax Directive (2011/64/EU). The introduction of a harmonised tax framework for these products across the Union remains our preferred approach, as it will be the most effective way to address the policy and operational challenges involved in taxing such products. However, the Commission’s proposals for revision of the Directive have been postponed on a number of occasions in the last few years, and a significant number of Member States have moved to introduce domestic taxes on e-cigarette products. In the interests of public health, we too have decided to proceed with the introduction of a national tax.
The Deputy should note that my officials have engaged with the Revenue Commissioners on the practical implementation of the EPT. In response Revenue have advised that the EU Single Market rules preclude the use of any cross-border movement controls in the administration of a national excise. This means that e-liquid products coming into the State from other Member States or Northern Ireland (which is still part of the Single Market for goods) cannot be made subject to cross-border movement controls that are typical for the EU-harmonised excises which apply on mineral oils, tobacco and alcohol.
Ireland currently operates a tax stamp system in accordance with section 73 of Finance Act 2005 (as amended) in respect of specified tobacco products (cigarettes and roll-your-own tobacco) as part of the control regime linked to the taxation of these products. The taxation of tobacco products is harmonised across the EU, and as part of these arrangements, the products are subject to the strict EU-wide control and movement regime. This means that their movement is tightly controlled through authorised tax warehouses under duty suspension arrangements, and the charge to Tobacco Products Tax arises when products are released for consumption. However, because e-liquids are not harmonised excisable products, Revenue is unable to use the existing movement control system (EMCS) and tax warehousing for the purpose of collecting a national excise such as EPT. Essentially, e-liquids cannot currently use the regime that is used to tax and control tobacco products.
It is expected, though, that the revision of the Tobacco Tax Directive, when progressed, will introduce harmonised measures for e-liquids across the EU which would see e-liquids brought into the current excise movement and control system. At such point, the extension of the Tobacco Tax Stamp system to such products can be considered.
While the EU’s taxation proposals for e-cigarettes are still awaited, the permissible product specifications for such items are already set out in EU law. The Tobacco Products Directive (2014/40/EU) lays down regulations for e-cigarettes and nicotine-containing e-liquids placed on the market in the EU. The Directive sets a maximum nicotine concentration level and volume for cartridges, tanks and nicotine liquid containers, as well as a number of other health and safety regulations in relation to ingredients and packaging. The provisions of the Directive were transposed into Irish law under the European Union (Manufacture, Presentation and Sale of Tobacco and Related Products) Regulations 2016. Under this legislation, the HSE must be notified by manufacturers or importers in advance of any e-cigarette or refill containers that are to be placed on the market.
The Department of Health’s Public Health (Tobacco Products and Nicotine Inhaling Products) Act 2023 introduced a number of measures in relation to e-cigarettes. Sales of the products to those under 18 are now banned and additional restrictions on the advertising, points of sale and the promotion of e-cigarettes are included in the Act. A new licensing system to regulate the retail sale of tobacco and nicotine inhaling products like e-cigarettes is to be introduced under the Health legislation in February 2026. Under these measures, sellers of nicotine inhaling products such as e-cigarettes will be required to hold a licence in order to legitimately sell such products. Sellers will require an individual licence for each outlet where they sell nicotine inhaling products. The issuing and enforcement of such licences will be the responsibility of the HSE. Further measures regarding the regulation of these products are to be introduced by the Minister for Health under the Public Health (Nicotine Inhaling Products) Bill 2024.
174. Deputy Barry Ward asked the Minister for Finance the position regarding the help to buy scheme threshold; if he has considered increasing this threshold for properties purchased in Dublin; and if he will make a statement on the matter. [6859/25]
Amharc ar fhreagraThe Help to Buy (HTB) incentive 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.
The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:
• €30,000; or
• 10 per cent of the purchase price of the new property; or,
• the amount of Income Tax and DIRT paid in the four years before application for the relief.
An increase in the supply of new housing remains a central and priority aim of Government policy. For this reason, HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
Based on the latest available data (30 November 2024), the HTB scheme has supported almost 52,000 individuals or couples to buy their own home, of which around 87% of claims were for properties which did not exceed €450,000 in value.
An independent review of the scheme was carried out in 2022. While this review included a number of recommended amendments to the scheme, it did not recommend an increase to the €500,000 house price limit.
The Programme for Government commits to the retention and revision of the HTB scheme. As the Deputy will appreciate all decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, having regard to the sound management of the public finances and the impact any proposed changes would have on the broader housing market.
175. Deputy Paul Murphy asked the Minister for Finance if he will ensure that carer’s allowance and carer’s benefit will no longer be subject to taxation; and if he will make a statement on the matter. [6872/25]
Amharc ar fhreagraCarers play a fundamental supporting role in society and Government are committed to supporting individuals and families with caring responsibilities. This is acknowledged by the broad range of commitments in the Programme for Government to improving supports and ensuring that the social welfare system is progressive and empowers people with a disability.
To answer the Deputy's specific question regarding the tax treatment of carer's allowance and carer's benefit, it is a general principle of taxation that, in the absence of a specific exemption, income from all sources is, in general, subject to tax.
Section 19 of the Taxes Consolidation Act 1997 (TCA 1997) provides that income from offices or employments, and from annuities, pensions or stipends payable out of State funds, is within the charge to tax under Schedule E. Section 112 TCA 1997 charges income tax on all Schedule E income received in a year, with the exception of proprietary directors who pay tax in the year the income arises. Therefore, all payments from the Department of Social Protection are considered taxable under Schedule E unless specifically exempted from income tax. Section 126 (6A) TCA 1997 provides for the exemption of certain payments from the Department of Social Protection from income tax which are listed in the table within Section 126 TCA 1997. As carer’s allowance and carer’s benefit are not listed as exempt payments within this table, they are therefore taxable.
However, the level of tax payable, if any, on such income is then determined by the personal circumstances of the recipient, taking into account factors such as the individual's other sources of income and the available tax credits and standard-rate bands.
As the Deputy will appreciate, decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to the sound management of the public finances. However, there are no plans to depart from the present arrangements such that these payments are taxable sources of income.
176. Deputy Michael Cahill asked the Minister for Finance to provide an up-to-date report on tax relief for gym membership as outlined in budget 2025 and in the programme for Government; and if he will make a statement on the matter. [6921/25]
Amharc ar fhreagraAs the Deputy will be aware, the Programme for Government, Securing Ireland’s Future, includes a commitment to “Consider measures, in conjunction with the Department of Finance, to encourage gym membership and active participation in sport and exercise.”
In line with best practice, proposals for the introduction of new tax measures or the amendment of existing tax reliefs must be assessed in accordance with my Department's Tax Expenditure Guidelines.
My officials will consider the matter over the coming months with the expectation that an update of the examination will be provided as part of the annual Tax Strategy Group process during the summer.
Any decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time, and having regard to available resources and the sound management of the public finances.
