Michael McGrath (Cork South Central, Fianna Fail)
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The Help to Buy (HTB) scheme assists first-time purchasers with the deposit they need to buy or build a new house or apartment. The scheme provides for a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to certain conditions being met.

Section 477C Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the HTB scheme. A HTB claimant must make an application confirming he or she meets various conditions, including that he or she is a “first-time purchaser” and that the new property will be occupied as his or her sole or main residence.

I am advised by Revenue that the definition of “first-time purchaser” for the purposes of the scheme is 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. Therefore, where an individual has previously purchased or built a dwelling, he or she will not be eligible for the HTB scheme.

However, where an individual has previously inherited a property, the individual may still be considered a first-time buyer for the purposes of the HTB scheme, on the basis that they have not previously purchased, or built a dwelling.

Therefore, an individual who has previously inherited a property is not precluded from claiming HTB relief, provided all other conditions of the scheme are met.