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 of 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 1997 outlines the definitions and conditions that apply to the HTB scheme. I am advised by Revenue section 477C (6) provides that a HTB claimant must make an application confirming he or she meets various conditions specified in the legislation, including that he or she is a first-time purchaser. Where there is more than one party to a HTB claim, the first-time purchaser condition applies to each party of the claim, therefore, where there are two people buying a new property and one of them is not a first-time buyer, the purchase is not eligible for the scheme.

Section 477C (1) defines the term “first-time purchaser” for the purposes of the HTB scheme as being “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”. Where more than one individual is involved in purchasing or building a qualifying residence, all of the individuals must be first-time purchasers.

The intention is to target the Help to Buy scheme 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.

I have no plans at present to amend the definition.