Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

We have not carried out any study beyond the study and information I published as part of budget 2019. I have retained the scheme because it provides important help for people who are looking to buy their first home in particular. On the view that could be created that the scheme looks in some way to support developers or the purchase of valuable home, the average house purchase price available under the scheme tell a very clear story in this regard. If one looks at the purchases properties with the assistance of the scheme, approximately 56% were priced between €226,000 and €375,000. These are houses that people typically seek to buy as their first homes and I want to have measures in place that help low and middle-income citizens to do that. It has been a standard feature of tax codes to have such supports available. The scheme is providing a valuable support to those looking to buy their first home and is merited for a further period.

The amendment is technical in that it addresses an error in the original drafting of the section. As announced in my Budget Statement, the section extends the help-to-buy incentive by 24 months to 31 December 2021. In extending the scheme for two more years, Revenue included a new formula of words to determine the tax look-back for applicants. The amendment removes the proposed new section 477C(7)(c) from section 15 as it runs the risk of reducing the relief available for many applicants. The current draft set out in the Bill means an applicant in 2020 will not be able to rely on the 2019 tax for relief. Revenue's intention was to align applications with the annual tax return cycle and the consequences of the change were not fully appreciated at that time. Revenue believes the existing text would be sufficient to ensure the relief allows applicants to continue to avail of their tax in the year immediately prior to the application for claims in 2020 and 2021.