Richard Bruton (Dublin Bay North, Fine Gael)
Link to this: Individually | In context | Oireachtas source

140. To ask the Minister for Finance if availing of a shared equity scheme either through first homes or through a local authority scheme can hamper the extent to which help-to-buy entitlements can be claimed; if he has considered extending the concession made to those using the local authority scheme to also cover those availing of first homes; and if he will make a statement on the matter. [38376/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

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 on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation.

HTB, as provided for by section 477C of the Taxes Consolidation Act 1997, only applies where a mortgage is taken out to purchase or build a home and where the value of the qualifying loan is a minimum of 70% of the ‘purchase value’ of a purchased new build or 70% of the approved valuation of a self-build.

In Finance (No. 2) Act 2023, HTB was amended to enhance its interaction with the Local Authority Affordable Purchase Scheme (LAAPS). This amendment enabled the use of the affordable dwelling contribution received through the LAAPS for the purposes of calculating the 70 per cent loan-to value requirement, thereby facilitating access to a greater number of LAAPS purchasers to the HTB scheme. The affordable dwelling contribution received from the Local Authority under LAAPS is included in the numerator when calculating the 70 per cent loan-to-value ratio.

The First Home Scheme (FHS) already has a built-in mechanism that allows it to work in tandem with HTB by reducing the equity stake available to purchasers to 20% in cases where HTB is claimed.

As with all tax incentive schemes, there will always be individuals who do not meet the eligibility criteria. In designing tax reliefs, there is 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 the limited Exchequer resources are managed appropriately.

In relation to the question of any potential amendments to HTB pertaining to LAAPS or FHS, as the Deputy will appreciate, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any matters that might be the subject of Budget decisions.