Michael Healy-Rae (Kerry, Independent)
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135. To ask the Minister for Finance his views on a matter (details supplied) regarding the help-to-buy scheme; and if he will make a statement on the matter. [2681/17]

Michael Noonan (Limerick City, Fine Gael)
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The process to register as a 'qualifying contractor' for the Help to Buy incentive requires documentation be submitted which shows:

- that the contractor has valid tax clearance and is considered compliant for Relevant Contracts Tax (RCT) purposes

- details of the proposed or actual qualifying residences.  Such details include a copy of the planning permission, the residences already constructed (if already built) and details of the ownership of the land on which the qualifying residences are, or will be, constructed.

In addition, a short one-page registration form, HTB1, seeks the applicant's consent to have his, her or its name and tax registration number published on the Revenue website as a 'qualifying contractor'.  The publication details are necessary in order that potential purchasers can check that the contractor qualifies under the incentive.

The Help to Buy scheme is a generous incentive that facilitates the purchase of a new home by a First Time Buyer.  For new builds, the rebate is payable on signing the contract to purchase the property rather than upon completion of the sale.  This means that it is necessary that details of the planning permission and ownership of the land are provided to Revenue.  This information is completely within the control of the builder/developer.  The other key condition is that of tax clearance/tax compliance.  If a contractor is not tax compliant, in order to participate in the scheme, he or she should engage with Revenue to bring his or her tax affairs up to date.

These administrative requirements on contractors to be registered as 'qualifying contractors' are necessary in order to safeguard public monies being paid under the incentive.  I do not regard such requirements as particularly onerous and the information sought is generally seen as the minimum necessary to satisfy Revenue that the purpose of the incentive, the increased provision of houses for First Time Buyers, will be delivered, and by tax compliant contractors.

The Deputy should also be aware that Help to Buy claimants who purchase their home on or after 1 January 2017 are effectively instructing the Revenue to pay their Help to Buy rebate directly to their approved qualifying contractor's bank account. Consequently, it is crucial that the bona fides of the contractor in question is fully established at the point the rebate is made.

As regards the level of interest on the part of contractors, I am advised by Revenue that in the period up to and including 20 January 2017, there have been 53 applications for registration.  Thirteen of these applications have been registered as 'qualifying contractors' and their details published on the Revenue website. The remaining applications are being processed and any unsuccessful applicants have been advised about how to address any issues arising in their application.  

I am further advised by Revenue that they have seen a steady increase in the number of applications.  There were nine applications received in 2016, and in the first three weeks of January the number of weekly applications have been 8, 14 and 22, respectively.  I believe that these statistics show that contractors do indeed believe that it is worth their while registering for the incentive.

Brendan Griffin (Kerry, Fine Gael)
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136. To ask the Minister for Finance the rights and recourse a first time buyer has in the event of a builder or developer refusing to complete the required forms to enable the buyer to avail of the new first time buyers scheme; if there is an alternative route for the buyer to follow in such circumstances to avail of the grant; and if he will make a statement on the matter. [2572/17]

Michael Noonan (Limerick City, Fine Gael)
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The legislation setting out the payment provisions for the Help to Buy incentive is contained in Section 477C (16) of the Taxes Consolidation Act 1997.  Claimants are required to complete a two-stage online process; an application and then a claim. 

First-Time Buyers under the Help to Buy incentive fall into 3 categories as follows:-

1. Claimants who have contracted to purchase, or drawn down the first tranche of their qualifying loan to self-build, their home in the period between 19 July 2016 and 31 December 2016, inclusive.  This category is known as Retrospective Claimants.

2. Claimants who contract to purchase their home, in the period between 1 January 2017 and 31 December 2019.

3. Claimants who draw down the first tranche of their qualifying loan to self-build their home in the period between 1 January 2017 and 31 December 2019.

Regarding retrospective claimants, I am advised by Revenue that the claim process does not require the developer to pass information to Revenue.  Instead, retrospective claimants are required to submit supporting documentation including a signed copy of the contract, evidence of their mortgage or mortgage drawdown, and details of the property directly to Revenue. 

Regarding claimants who contract to purchase their home in the period between 1 January 2017 and 31 December 2019, I am advised that the information supplied by the claimant will require verification by the Revenue-approved qualifying contractor before any refund is paid.  The appropriate refund will be made directly to the qualifying contractor. Therefore I am advised that Revenue do not envisage any delays on the part of the contractor in completing the process.

Regarding claimants who draw down the first tranche of their qualifying loan to self-build their home in the period between 1 January 2017 and 31 December 2019, I am advised that the information supplied by the claimant will require verification by the claimant's solicitor before any refund is paid. The appropriate refund will be made to the claimant's qualifying loan bank account. Such claims do not require the developer to pass information to Revenue.

I am advised by Revenue that once complete information is received, all refunds are being processed in full without delay.

All claimants are advised to provide the necessary information to Revenue via MyEnquiries, which is an online service that allows customers to securely send correspondence to Revenue.  MyEnquiries can be accessed from the Revenue website www.revenue.ie either through myAccount or through ROS (Revenue's Online Service), depending on whether the claimant is a PAYE taxpayer or a self-employed taxpayer.

If the Deputy knows of a contractor who is not co-operating with a First Time Buyer to allow them claim any payments under the Help To Buy incentive, he should provide these details to my officials and I will arrange to have this information passed to Revenue.