Written answers

Thursday, 20 February 2025

Photo of Barry WardBarry Ward (Dún Laoghaire, Fine Gael)
Link to this: Individually | In context | Oireachtas source

169. To ask the Minister for Finance the position regarding the review of the help to buy scheme as set out in the programme for Government; if the level of tax relief is one of the aspects to be put under review; and if he will make a statement on the matter. [6887/25]

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael)
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 of Income Tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four years, subject to limits outlined in the legislation.

The level of support available to first time buyers under the HTB scheme, is whichever is the lesser of:

  • €30,000; or
  • 10 per cent of the purchase price of the new property; or,
  • the amount of Income Tax and DIRT paid in the four years before application for the relief.
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. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.

Based on the latest available data (30 November 2024), the HTB scheme has supported almost 52,000 individuals or couples to buy their own home.

The Programme for Government commits to the retention and revision of the HTB scheme. All decisions regarding taxation measures are made in the context of the annual Budget and Finance Bill processes, at the appropriate time and having regard to the sound management of the public finances.

Comments

No comments

Log in or join to post a public comment.