Simon Harris (Wicklow, Fine Gael)

I move amendment No. 7:

In page 13, between lines 23 and 24, to insert the following: “Amendment of section 477C of Principal Act (Help to Buy)

5. Section 477C of the Principal Act is amended, with effect as on and from 26 November 2025, in subparagraph (ii) of the definition in subsection (1) of “qualifying residence”, by the substitution of “paragraph (c) or (cac), as the case may be, of section 46(1)” for “section 46(1)(c)”.”.

This amendment, much of which we probably discussed in recent days, endeavours to address an issue that arises with the help to buy scheme, as a consequence of the reduced rate of VAT applying to apartments. At present, section 477C of the Taxes Consolidation Act 1997 defines "qualifying residence" as one in respect of which the construction work is subject to the 13.5% rate of tax as specified in section 46(1)(c) of the Value-Added Tax Consolidation Act 2010.

Consequent to the application of the 9% VAT rate to the construction of new apartments, which will be discussed further at amendment No. 31, it is necessary to amend the definition of "qualifying residence" to reflect the change to the rate of VAT. This amendment will ensure that apartments subject to the VAT rate of 9% will remain within the scope of the help to buy scheme.

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