Pearse Doherty (Donegal, Sinn Fein)
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92. To ask the Minister for Finance the rationale for amending the definition of 'qualifying residence' in the Finance Bill; and if he will make a statement on the matter. [42090/24]

Jack Chambers (Dublin West, Fianna Fail)
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I assume the Deputy is referring to section 7(a)(ii) of the Finance Bill 2024 (as initiated) which, once enacted, will amend the definition of “qualifying residence” in section 477C(1) of the Taxes Consolidation Act 1997. Section 477C provides for the Help to Buy (“HTB”) scheme.

One of the policy aims of the HTB scheme is to incentivise the construction of additional housing units. Reflecting this, it is aimed solely at new-build properties. However, where a local authority purchases a new-build property from a developer and resells it to an affordable purchaser under the Local Authority Affordable Purchase (LAAP) Scheme, HTB is not currently available to the affordable purchaser. This is because the property, being sold for a second time, is not considered a “new” home for the purposes of HTB and is therefore not a “qualifying residence” as defined in section 477C(1).

The amendment to the definition of “qualifying residence” in section 477C(1) will ensure that newly constructed properties purchased by a local authority from a developer for onward sale to an affordable purchaser under the LAAP scheme are eligible for HTB.