Brendan Griffin (Kerry, Fine Gael)
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60. To ask the Minister for Finance if the construction of a 1,700 sq. ft extension and the complete renovation of a derelict 1,000 sq. ft house constitutes a new build or self-build for the purposes of the help-to-buy scheme (details supplied); and if he will make a statement on the matter. [2115/21]

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.

I am advised by Revenue as follows:

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(1) defines a ‘qualifying residence’. The legislation is 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. Renovation or refurbishment of old houses to either upgrade or reinstate them for habitation does not qualify for HTB. The previous dwelling must have been demolished and replaced as opposed to being extended/refurbished. In the circumstances where a house was previously used as a dwelling but knocked down and rebuilt, then it is “new”.

Based on the information outlined by the Deputy, it appears that in this case the applicants are renovating and extending an old derelict house, which would not be considered as “new” for the purposes of the HTB scheme and accordingly does not qualify for HTB.