John Brady (Wicklow, Sinn Fein)
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120. To ask the Minister for Finance if consideration will be given to increasing the allowances for those who qualify for vehicle registration tax, VRT, and VAT relief for the purchase of a specially adapted vehicle under the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [20701/23]

Michael McGrath (Cork South Central, Fianna Fail)
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The Disabled Drivers and Disabled Passengers (Tax Concessions) Scheme (DDS) provides relief from Vehicle Registration Tax and VAT on the use of an adapted car, as well as an exemption from motor tax and an annual fuel grant.

The Scheme is open to severely and permanently disabled persons as a driver or as a passenger and also to certain charitable organisations. In order to qualify for relief, the applicant must hold a Primary Medical Certificate issued by the relevant Senior Area Medical Officer (SAMO) or a Board Medical Certificate issued by the Disabled Driver Medical Board of Appeal. Certain other qualifying criteria apply in relation to the vehicle, in particular that it must be specially constructed or adapted for use by the applicant.

To qualify for a Primary Medical Certificate an applicant must be permanently and severely disabled. The terms of the Disabled Drivers and Disabled Passengers Scheme set out six medical criteria as legislatively mandated, at least one of which is required to be satisfied in order to obtain a Primary Medical Certificate.

The maximum amount of VRT/VAT relief provided and the length of time a vehicle must be retained depends on the applicant and the nature of adaptations as below.

Vehicles may be new, imported (not previously registered in the State) or used (previously registered in the State). Where applicable VRT exemption or repayment is first provided, then VAT repayment on adaptation and purchase costs, up to the allowable limit. Any vehicle, including electric vehicles, can avail of DDS reliefs subject to meeting qualifying conditions in respect of the individual and of the vehicle.

DDS Scheme recipients with a petrol or diesel vehicle may claim payment of a fuel grant. The fuel grant covers the excise tax elements of petrol, diesel and liquefied petroleum gas (LPG). As electricity supplied for household use is not subject to excise tax, there is no provision under the DDS to cover electricity used to recharge electric vehicles.

My officials, with Revenue colleagues, monitor the sufficiency of existing provisions and where necessary make recommendations for any changes, while also recognising the conclusions of the final report of the National Disability Inclusion Strategy (NDIS) Transport Working Group (TWG). The NDIS TWG, comprising members from a range of Departments, agencies and Disabled Persons Organisations, was tasked under Action 104 to review all Government-funded transport and mobility supports for those with a disability, including the Disabled Drivers and Disabled Passengers Scheme (DDS). The NDIS TWG final report was published on 24th February 2023 and noted both the outdated approach of the Disabled Drivers and Disabled Passengers Scheme and the fact that the scheme needed to be addressed as a matter of priority.

Eoin Ó Broin (Dublin Mid West, Sinn Fein)
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121. To ask the Minister for Finance if the 70% loan to value ratio required to avail of the help-to-buy scheme applies to the market value or discounted price of the property for a purchase of a local authority affordable home under the affordable housing fund; and, if the former, to explain the reason. [20712/23]

Michael McGrath (Cork South Central, Fianna Fail)
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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 paid in the State 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 scheme.

HTB will only apply where a mortgage is taken out to purchase or build a home and where the value of the qualifying loan is a minimum of 70% of the ‘purchase value’ of a purchased new build or 70% of the approved valuation of a self-build.

The ‘purchase value’ of a purchased property is the price paid for the residence. In cases where the price paid is less than market value, the ‘purchase value’ will be the market value. The ‘purchase value’ of a property cannot be less than its market value for the purposes of this calculation.

In the case of a property purchased from a local authority under the Local Authority Affordable Purchase scheme, the HTB loan to value ratio is calculated using the market value of the property.