Written answers
Tuesday, 29 July 2025
Department of Finance
Departmental Reviews
Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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639. To ask the Minister for Finance if he will review correspondence (details supplied) to establish if anything can be done to resolve the issue raised; and if he will make a statement on the matter. [41394/25]
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 require to buy or build a new house or apartment. The incentive gives a refund of Income Tax and Deposit Interest Retention Tax paid in Ireland over the previous four years, subject to limits outlined in the legislation. Section 477C Taxes Consolidation Act (TCA) 1997 outlines the conditions that apply to the scheme.
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.
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.
Section 477C (1) TCA 1997 requires that the purchase value of the qualifying residence not exceed €500,000. In the case of a self-build residence, the purchase value is defined as the approved valuation, being “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”.
Section 477C (1) TCA 1997 further provides that any subsequent valuation which was not approved by the lender at the time the mortgage was entered into, does not qualify for the HTB scheme.
I am advised by Revenue that the person concerned was advised on the 3 July 2025, that the property in question is ineligible for the HTB Scheme as the official documentation from the mortgage lender, at the time the mortgage was entered into, valued the property in excess of €500,000. Notwithstanding that an updated valuation was provided, it does not meet the statutory definition of approved valuations, as it was not approved by the lender at the time the mortgage was entered into.
The person concerned has the right to appeal this decision by completing and submitting a Notice of Appeal to the Tax Appeals Commission (TAC). Details on how to make an appeal can be found on the TAC’s website at www.taxappeals.ie.
Further information in relation to the conditions and operation of the Help to Buy Scheme are contained in Revenue’s Tax and Duty Manual Part 15-01-46, www.revenue.ie/en/tax-professionals/tdm/income-tax-capital-gains-tax-corporation-tax/part-15/15-01-46.pdf
Niamh Smyth (Cavan-Monaghan, Fianna Fail)
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640. To ask the Minister for Finance if he will review correspondence (details supplied) and examine whether anything can be done to resolve the issue raised; and if he will make a statement on the matter. [41395/25]
Paschal Donohoe (Dublin Central, Fine Gael)
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The Minister for State will be aware that as Minister for Finance, I have no direct function in the relationship between financial institutions and their customers and I cannot be involved in the commercial decisions made by individual lenders. I note from the information provided that this particular case is currently before the Courts and it would be inappropriate for me to comment on this case.
I would urge any borrower in financial distress to seek independent and expert advice. The Money Advice and Budgeting Service (MABS) can assist distressed borrowers with financial advice. Borrowers might also wish to consult with a Personal Insolvency Practitioner (PIP). PIPs are a network of qualified professional advisors regulated by the Insolvency Service of Ireland who can assess a person's options and may prepare a tailored solution that best suits their needs.
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