Michael Collins (Cork South West, Independent)
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89. To ask the Minister for Finance if he will address a matter regarding the case of first-time buyers (details supplied); and if he will make a statement on the matter. [34359/20]

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.

Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A claimant under the scheme must make an application confirming he or she meets various conditions specified in the section, including that he or she is a first-time purchaser and that he or she has completed a tax return form and is tax compliant for each of the tax years for which a claim is being made. The obligations apply to each party, where there is more than one party to a claim.

The definition of “first-time purchaser” for the purposes of the scheme is an individual who, at the time of making a claim under the scheme, has not, either individually or jointly with any other person, previously purchased or previously built, directly or indirectly, on his or her own behalf a dwelling. The “qualifying residence” must be occupied as the sole or main residence of the first-time purchaser.

In the circumstances raised by the Deputy, where a person has previously legally purchased or self-built a home as a “first-time purchaser” and received a HTB refund in respect of that property, but has since relinquished a holding in the property with no financial gain, he or she will no longer be considered for the HTB scheme given that it is a prerequisite for qualification for the relief that the taxpayer be a first-time purchaser.