Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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163. To ask the Minister for Finance if help-to-buy scheme applicants can claim the rebate retrospectively in the event of the contractor not being registered for the scheme with the Revenue Commissioners at the deposit stage of a home purchase. [7430/17]

Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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164. To ask the Minister for Finance in view of the low level of contractor registration for the help-to-buy scheme, his plans to address this problem; and the reasons a contractor may not register for the scheme. [7431/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 163 and 164 together.

Under the Help to Buy (HTB) scheme first-time home purchasers are required to ensure that they purchase from a 'qualifying contractor'.  I am advised that up to 10 February 2017 there were 138 applications for registration as a 'qualifying contractor' and Revenue has approved 55 contractors. The remaining applications are being processed, and any unsuccessful applicants are advised about how to address any issues arising in their application.  Details of the approved contractors are published on the Revenue website. I am advised by Revenue that they have seen a steady increase in the number of applications.  There were 9 applications for registration received in late 2016, 89 in January and 40 in the first two weeks of February.

I understand that there is a significant volume of queries from contractors about the scheme, and about the information needed to register as a 'qualifying contractor'.  Revenue presented at an information session organised by the Construction Industry Federation in January which was very well attended, and are to present at two further information sessions in Cork and Galway soon. The steady volume of applications and the level of interest in the scheme are apparent and I do not believe that there is a problem with the incentive. 

I would also point out that the scheme is still relatively new, and is due to run until the end of 2019.  While there is strong interest in Help To Buy, it is too early to draw any firm conclusions from the data emerging at this stage.

Regarding retrospective claims, the legislation underpinning the Help To Buy incentive is set out in section 477C Taxes Consolidation Act 1997.  The section distinguishes between refunds made in respect of contracts entered into in the period from 19 July to 31 December 2016 and those in the period from 1 January 2017 to 31 December 2019.  'Retrospective' first-time buyers are those persons who purchased in the period from when the incentive was announced on 19 July 2016 until the end of 2016 and the legislation provides that any such HTB refunds are paid directly to the claimant's bank account.  HTB refunds for first time buyers of new homes in the period from 2017 onwards, are however, payable to the qualifying contractor's bank account.  I am advised by Revenue that 'retrospective' first-time buyers who claim their HTB refund should have that claim verified by their contractor.  In the event that they cannot get their contractor to verify their claim, they should contact Revenue online via the 'MyEnquiries' facility.

With regard to the reasons why a contractor may not register for the scheme, I expect that would arise for non-compliant contractors who do not have valid tax clearance and would not be considered compliant for Relevant Contracts Tax purposes.  The HTB scheme provides that the tax credit is payable at deposit stage and in many cases will be paid before the house is built. I think it is extremely important that the contractor is tax compliant, as non-compliance is a very clear indicator that the contractor may not be financially sound and not in a position to complete the contract.  I strongly encourage any contractor who is non-compliant, and wishes to be registered as a 'qualifying contractor', to contact Revenue with a view to regularising their tax affairs.