Ivana Bacik (Dublin Bay South, Labour)
Link to this: Individually | In context | Oireachtas source

225. To ask the Minister for Finance if there is a clause in the enhanced help-to-buy scheme which allows separated or divorced people who are not first-time buyers to avail of the scheme; and if he will make a statement on the matter. [24068/23]

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

People who have been separated or divorced may be eligible for Help to Buy (HTB) provided that they meet the eligibility criteria for the scheme. However, s. 477C of the Taxes Consolidation Act 1997 (TCA) requires that HTB claimants must be first-time purchasers.

First-time purchaser, for the purposes of HTB is defined as:

"an individual who, at the time of a claim under subsection (3) 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;"

This definition includes circumstances where there is more than one person is involved in the purchase or building of a new home.

There are no exceptions to the above definition of first-time purchaser for the purposes of HTB. This means that HTB is not available where one or more of the purchasers has previously purchased or built a property but as a result of a separation or divorce subsequently no longer have an interest in that property.

The intention behind this policy is to target the HTB relief on those who have not had the opportunity to build up equity in another property which could be used to purchase the second or subsequent property and those who could not have availed of HTB relief previously. While I understand the difficulties faced by individuals in saving for a deposit for a home, the HTB incentive was designed as a targeted response to the challenges facing first-time purchasers in particular.

As with all tax incentive schemes, there will always be individuals who do not meet the eligibility criteria. In designing tax reliefs, there is always a balance to be struck between providing support to as many people as possible, consistent with the overall policy intention behind the measure, and ensuring that there is an appropriate degree of control in the management of limited Exchequer resources.

I have no plans at present to extend HTB eligibility to non-first-time buyers.