David Stanton (Cork East, Fine Gael)
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59. To ask the Minister for Finance the position on persons who have lost their first house due to bankruptcy in respect of the help-to-buy scheme; if an application by such persons who would otherwise meet all other required criteria would be accepted under the scheme; and if he will make a statement on the matter. [3045/21]

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.

Section 477C of the 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 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.

Section 477C provides a definition of a “first-time purchaser” for the purposes of the HTB scheme. A “first-time purchaser” 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.

I am advised by Revenue that in circumstances where a person has previously purchased or self-built a home, but the property has since been repossessed due to bankruptcy, the individual will no longer be considered a “first time purchaser” for the HTB scheme given that it is a prerequisite for qualification for the relief that the taxpayer be a first-time purchaser.