Éamon Ó Cuív (Galway West, Fianna Fail)
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89. To ask the Minister for Finance if he will alter the terms of the help-to-buy scheme to ensure that all those persons that had not drawn down their full mortgage by 19 July 2016 would be eligible for the scheme; the reason that date was chosen in the first place; and if he will make a statement on the matter. [2365/17]

Michael Noonan (Limerick City, Fine Gael)
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The commencement date for the Help to Buy scheme of 19 July 2016 was chosen as it was the date of the launch of 'Rebuilding Ireland Action Plan for Housing and Homelessness, in which the development of such a scheme for inclusion in the Budget was initially announced. The intention to backdate this tax incentive to this date was announced at that time with a view to avoiding any potential interruption in house sales, by purchasers who may otherwise have deferred purchases, pending the commencement of the incentive.

I have no plans to backdate the scheme prior to 19 July, as to extend eligibility for the scheme further back than the date of its initial announcement would consist entirely of deadweight. One of the primary policy aims of the incentive is to assist those struggling to save for the deposit required in purchasing a house.  Individuals who purchased new homes before the announcement of the incentive, did not need the assistance of the State to fund the required deposit. Such individuals made their purchasing decisions on the basis of the information available to them at the time of purchase, and could not have expected a subsequently introduced tax relief to also be available to them. Similarly, those who commenced the drawdown of agreed mortgages in respect of self built properties before 19th of July, could also not have expected a subsequently introduced tax relief to be available to them.

As with all time bound reliefs, there will always be those who just miss out on qualification. I do not intend to extend the parameters of this new measure any further as it would become less targeted and more costly.