Michael McGrath (Cork South Central, Fianna Fail)
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The Help to Buy (HTB) scheme is administered by Revenue to assist first-time buyers with buying or building a new house or apartment. The scheme gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to qualifying criteria as outlined in legislation. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.

One of the qualifying conditions of the HTB scheme is that the applicant be tax compliant for all relevant periods of the HTB application, including the filing of the relevant Income Tax Returns and payment of any associated tax liabilities.

Notwithstanding this, I am advised by Revenue that HTB relief will be granted where an underpayment of tax arises for 2020 as a result of amounts received under Covid supports, and where the underpayment is being collected through a reduction in the claimant’s tax credits, provided all other conditions of the HTB scheme are satisfied.

The Revenue Tax and Duty Manual Part 15-01-46 outlines further guidance on the conditions and operation of the HTB scheme and is available at: www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-46.pdf.

Should further clarification be required, the Deputy can contact Revenue on its dedicated Oireachtas Helpline or any person’s impacted can contact Revenue directly, either online via MyAccount or by phone at (01) 738 3636.