Gerald Nash (Louth, Labour)
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45. To ask the Minister for Finance if his attention has been drawn to the negative impact of a debt to the Revenue Commissioners on an application for the help-to-buy scheme as a result of an applicant’s employer availing of the temporary wage subsidy scheme in 2020 and therefore creating an underpayment of personal tax for 2020 which will be repaid by the reduction in tax credits over a four year period by agreement with the Revenue Commissioners; and if he will make a statement on the matter. [6101/21]

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 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 paid any outstanding balance for each of the four tax years prior to making the application.

In relation to the tax due (if any) on amounts received under the Temporary Wage Subsidy Scheme (TWSS) or Pandemic Unemployment Payment (PUP), I am advised by Revenue that employees will be given the opportunity to fully or partially pay any income tax liability through the Payments/Repayments facility in myAccount. Otherwise, Revenue will collect the liability, interest free, by reducing the employees tax credits over 4 years to minimise any hardship. The reduction of tax credits will start in January 2022.

Where an underpayment of tax arises for the year 2020 as a result of amounts received under the TWSS or PUP, Revenue further advise me that it will allow a claim for HTB relief for the amount of income tax paid for 2020 and will not require the outstanding tax liability to be paid in advance where the underpayment of tax is due to be collected from 2022 by reducing the claimant’s tax credits. This will only apply where all other conditions of the HTB scheme are satisfied.