Written answers

Tuesday, 5 October 2021

Photo of Thomas PringleThomas Pringle (Donegal, Independent)
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154. To ask the Minister for Finance if he will extend the help-to-buy scheme beyond the current expiry date due to Covid-19-related restrictions in 2020 and 2021 for building; and if he will make a statement on the matter. [48173/21]

Photo of Paschal DonohoePaschal 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 on Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the definitions and conditions that apply to the HTB scheme.

In summary, the process to claim HTB involves two stages, application stage and claim stage. Where an application is made during the period 1 October to 31 December 2021, and a claim is made on foot of such an application in the period 1 January to 31 March 2022, the claim will be deemed to have been made in 2021. However, the timeframe for entering into a contract to purchase or, in the case of a self-build, to have drawn down the first tranche of a qualifying loan does not change, the end date of 31 December 2021 for so doing still applies.

Following a commitment in the Housing for All strategy, my Department carried out a review of the scheme as part of its Tax Strategy Group deliberations. The resultant paper entitled "Income Tax (Incorporating a Review of the Help-to-Buy Scheme)"is available on the Government website at the following link: www.gov.ie/en/collection/d6bc7-budget-2022-tax-strategy-group-papers/.

In the coming days, I will be taking stock of where matters stand and decisions will be taken in relation to Help-to-Buy having regard to a number of elements including the overall policy context in which the scheme operates and my Department's deliberations as set out in the recent Tax Strategy Group paper.

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