John Connolly (Galway West, Fianna Fail)
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263. To ask the Minister for Finance the reason individuals building on their own land have the land value taken into account in the approved valuation when assessing for the help to buy scheme; and if he will make a statement on the matter. [35681/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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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 legislation governing the HTB scheme is set out in section 477C of the Taxes Consolidation Act 1997 and outlines the definitions and conditions that apply to the HTB scheme.

In the case of a self-build property, section 477C(1) of the Taxes Consolidation Act 1997 defines the term “approved valuation” as “the valuation of the residence that, at the time the qualifying loan is entered into, is approved by the qualifying lender as being the valuation of the residence”.

As per above, the valuation of a self-build property is as approved by the lender and is determined in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation as comprising the value of the site plus the cost of construction.