Dáil Éireann Debate, Tuesday - 30 April 2024
242. Deputy Sean Sherlock asked the Minister for Finance if there is an appeal on the valuation of the home under the help-to-buy-scheme; if he will consider a case (details supplied); and if he will make a statement on the matter. [19346/24]
View answerThe 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 on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C (11) of the Taxes Consolidation Act 1997 provides that, for a valid claim to be made, the ‘loan-to-value’ (LTV) ratio in respect of a claim cannot be less than 70%. The LTV is defined as the amount of the qualifying loan as a proportion of the purchase value of the qualifying residence.
The Finance Act states that an “approved valuation”, for the purposes of a self-build qualifying residence, means the valuation of the residence, as approved by the qualifying lender, at the time the qualifying loan is entered into.
While the HTB scheme’s LTV ratio criteria was originally a minimum LTV of 80%, following a review, based on Central Bank data which indicated that a large number of first-time buyers take out a mortgage with a LTV of less than 80%, the ratio was reduced to a minimum of 70% to ensure that first-time buyers did not feel compelled to borrow larger amounts than they would have otherwise in order to qualify for the scheme.
Further information to the HTB Scheme can be found on Revenue’s website at:
www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
I am advised by Revenue that there are no cases currently under appeal regarding the valuation of the home under the Help to Buy scheme, however, should the individuals concerned wish to appeal Revenue’s decision, they can lodge that appeal with the Tax Appeals Commission (TAC). Further information on lodging Tax Appeals can be found on the TAC website at: www.taxappeals.ie
