Michael Ring (Mayo, Fine Gael)
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227. To ask the Minister for Finance the reason the help-to-buy scheme does not apply to first-time purchasers when buying a second-hand property; if this can be reviewed; if he will consider reviewing the scheme to include second-hand properties; and if he will make a statement on the matter. [22830/24]

Michael McGrath (Cork South Central, Fianna Fail)
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Help to Buy (HTB) is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive offers 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 Section 477C of the Taxes Consolidation Act 1997.

An increase in the supply of new housing remains a central and priority aim of Government policy. For this reason, HTB is specifically designed to encourage an increase in demand for new build homes in order to support the construction of an additional supply of such properties. For a property to qualify for HTB, it must be new or converted for use as a dwelling, having not previously been used as a dwelling.

A move to include properties which were previously used as residential homes/second-hand properties within the scope of the scheme itself would not improve the effectiveness of the relief; on the contrary, it could serve to dilute the incentive effect of the measure in terms of encouraging additional supply. Extending the HTB scheme in this way would provide no incentive effect to encourage the building of new homes and would be likely to have a significant dead-weight element and a high Exchequer cost. For these reasons, there are no plans, at present, to extend the HTB scheme to include such properties.

Mairéad Farrell (Galway West, Sinn Fein)
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228. To ask the Minister for Finance if he is aware of the situation in relation to the difference in tax treatment of travel and subsistence payments for those working in further education and training (FET) and those working in the secondary education sector (details supplied); the reason for the difference in tax treatment with respect to these payments; and if he will make a statement on the matter. [22845/24]

Michael McGrath (Cork South Central, Fianna Fail)
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The legislation governing the deductibility of expenses incurred in employment is contained in section 114 Taxes Consolidation Act 1997 (TCA). To qualify for tax relief under this section, any expenses of travelling (and subsistence relating to that travel) must be necessarily incurred in the performance of the duties of the relevant employment. For all other expenses, they must be wholly, exclusively and necessarily incurred in the performance of the duties of the relevant employment.

The provisions of section 114 TCA are strictly applied, with a body of case law supporting the interpretation and application of the section. Under the section, the expense must be incurred in the actual performance of the duties of the office or employment or as a direct consequence of those duties and should not arise because of the personal circumstances or preference of the individual.

Expenditure incurred by an employee or office holder which merely puts him or her in a position to exercise his or her employment or office would not be regarded as incurred in the performance of the duties of his or her office or employment. Accordingly, travel expenses between a person’s home and his or her normal place of work are not generally tax-deductible expenses.

The general position as set out in Revenue guidance, is that the normal place of work is where an employee works on a day-to-day basis. An employee's normal place of work is a question of fact that can only be considered based on the specific facts of each case.

Arising from a public consultation on the tax treatment of expenses of travel and subsistence for employees and office holders, legislation was introduced in Finance Act 2015 to exempt certain expense payments from tax. Section 195C TCA provides an exemption in respect of certain payments made by the State Examinations Commission (SEC) to, or on behalf of, an examiner in respect of travel and subsistence incurred by the examiner solely for examination purposes.

For the purposes of section 195C TCA, the following definitions apply:

• “Examiner” means a person who is an employee of the SEC for examination purposes. An Examinations and Assessment Manager is specifically excluded; and
• “Examination purposes” means the development or marking of examination papers or other examination materials, or the carrying out of invigilator duties at an examination.

• the payments must be made by the State Examinations Commission (SEC);
• must not exceed the Civil Service rates; and
• be in relation to an examination listed in Schedule 2 to the Education Act 1998.

• Leaving Certificate Examination;
• Junior Certificate Examination;
• Technological Certificate Examination;
• Trade Certificate Examination;
• Certificate in Commerce Examination;
• Ceardteastas Gaeilge Examination;
• Teastas i dTeagasc na Gaeilge Examination;
• Typewriting Teachers Certificate Examination; and
• Commercial Instructors Certificate Examination.