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. It provides that to make a HTB claim, a first-time purchaser must either have –

(a) entered a contract with a qualifying contractor to purchase a ‘qualifying residence’ that is not a ‘self-build qualifying residence,’ or

(b) drawn down the first tranche of a qualifying loan from a ‘qualifying lender’ in respect of a ‘self-build qualifying residence.’

Furthermore, section 477C(1) of the Taxes Consolidation Act 1997 defines a ‘qualifying residence’ as a property that:

• is a new build with the construction subject to VAT in Ireland,
• is bought or built as the first-time purchaser’s sole or main residence,
• has a purchase value / approved valuation not greater than €500,000, and
• was not previously, at any time, used, or suitable for use, as a dwelling.

A ‘self-build qualifying residence is further defined as a ‘qualifying residence’ which is built, directly or indirectly, by a first-time purchaser on his or her own behalf. As such, the conditions pertaining to a ‘qualifying residence’ also apply to a ‘self-build qualifying residence.’

Where it is established that a partially built property was not previously used, or suitable for use, as a dwelling, the property may come within the definition of a ‘qualifying residence,’ or a ‘self-build qualifying residence,’ if all other eligibility conditions are met.

The question of whether a property is a ‘qualifying residence’ or a ‘self-build qualifying residence’ can only be considered in light of the individual facts of each case. To provide a definitive view on whether a dwelling was partially built and was not previously suitable for use as a dwelling, sufficient evidence is required from the builder, engineer or other professionals working on the project about the condition of the dwelling which made it unfinished and unsuitable for use as a dwelling. This includes planning permission documentation, the property’s valuation report, engineer reports, and photographic evidence.

Where uncertainty exists as to whether the sale or further construction of a partially built property comes within the definition of a ‘qualifying residence’ or ‘self-build qualifying residence’, a qualifying contractor or individual should contact Revenue via its online enquiry facility ‘MyEnquiries’ outlining the specific facts and circumstances of the case and Revenue will consider whether the property would satisfy the conditions for the HTB scheme.