Paschal Donohoe (Dublin Central, Fine Gael)
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The Help to Buy (HTB) scheme was introduced to help first-time buyers of newly built homes. The scheme is applicable where a first-time buyer purchases or self-builds a new residential property.

Revenue has advised me that the person in question submitted a HTB application in respect of a renovation to an existing dwelling rather than a new build and on that basis does not qualify for the scheme. Revenue has confirmed to the person that such a renovation does not qualify for the scheme and requested that she provide further supporting documentation if she believes that it does qualify. Revenue further advise me that, once the supporting documentation is received, they will consider the application further.

Paschal Donohoe (Dublin Central, Fine Gael)
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The Help to Buy (HTB) incentive, is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.

In addition to the conditions laid down in section 477C Taxes Consolidation Act 1997 (TCA), including that the property is occupied as the sole or main residence of a first time purchaser, section 477C(2) defines a ‘qualifying residence’. The legislation is very specific as to the definition of a qualifying residence. It must be a new building which was not, at any time, used or suitable for use as a dwelling. If the property was non-residential, but has been converted for residential use, it may qualify for HTB. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for HTB.

For a property to qualify for Help to Buy it must be new, or, converted for use as a home not having been previously been used as a home. In the circumstances where the house was previously used as a dwelling but knocked down and rebuilt, then it is “new”. First-time buyers may purchase a site containing a house which is derelict and which they plan to demolish, in whole or in part, with the intention of building a new house. First time buyers intending to undertake such purchases should contact Revenue via MyEnquiries outlining the specific circumstances of their case and Revenue will consider them on a case by case basis.

For Revenue to make an assessment that the dwelling being built on the site is ‘new’, sufficient evidence is required which shows that the previous dwelling was demolished and replaced as opposed to being extended/refurbished. Revenue also require as much evidence as possible from the builder, engineer or other professionals working on the project, about the condition of the former dwelling which made it uninhabitable or unsound and required that it was demolished (and the extent of demolition involved). If there is any other information (photos, etc.) that’s relevant in helping Revenue understand that the property meets the criteria in the legislation, this should be included.