Written Answers Nos. 72-88
72. Deputy Richard Boyd Barrett asked the Minister for Finance if, given the urgency of boosting housing supply, he is considering further changes to the residential zoned land tax to accelerate activation of residential zoned land; and if he will make a statement on the matter. [22766/24]
View answerThe Residential Zoned Land Tax or RZLT was introduced in Finance Act 2021 and seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. RZLT, which is an action under Housing for All, aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing.
Each local authority in the State is responsible for the preparation of a RZLT map for their functional area. In preparing the draft RZLT maps each local authority determines whether the zoned land is connected or able to connect to the six required categories of services. Any exclusions which would rule the land out of scope were applied. Each local authority then publishes a draft RZLT map identifying the land which meets the requirements of the legislation and which may be liable to the tax.
It is important that affected landowners have sufficient opportunity to engage with the mapping process and that a fair and transparent process is applied when local authorities consider what land should be placed on the RZLT maps. Therefore, as part of Budget 2024, it was decided to extend the liability date of the tax by one year, from February 2024 to February 2025. The purpose of this deferral is to allow for the annual mapping cycle to complete and afford landowners another opportunity to make submissions if their land is included on the maps prepared by local authorities.
The deferral will also provide a further opportunity to landowners whose land appeared on a draft revised final map published on 1 February 2024 to request the rezoning of such land from the local authority in whose functional area the land is situated.
The implementation of the measure may be broken down into two phases; an initial mapping phase to identify land within the scope of the tax, which is being undertaken by local authorities, and the administration of the tax, which is the responsibility of Revenue.
The administration of the tax by Revenue will commence in 2025, with the initial liability date for the tax arising on 1 February 2025 with the first pay and file date following on 23 May 2025.
My Department, in conjunction with the Department of Housing, Local Government and Heritage are actively monitoring the implementation of the residential zoned land tax to ensure it meets its objective of activating suitable zoned and serviced land for housing.
73. Deputy Jennifer Murnane O'Connor asked the Minister for Finance the number of help-to-buy claims approved in Carlow since 1 July 2020, along with the number of applicants associated with these claims; and if he will make a statement on the matter. [22703/24]
View answerThe Help to Buy scheme is administered by Revenue to assist first-time buyers with buying or building a new house or apartment. The scheme gives a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid in the State over the previous four years, subject to qualifying criteria outlined in the legislation.
In the July 2020 stimulus plan, the scheme was amended so that the level of support available to first-time buyers was increased to the lesser of €30,000, increased from €20,000, or 10%, increased from 5%, of the purchase price of a new home or self-build property; or the amount of income tax and deposit interest retention tax paid in the four years before the purchase or self-build. The scheme was extended in its enhanced form in Budget 2021. The Help to Buy scheme was extended in the Finance Act 2022 for a further two years to the end of 2024, and again in Finance Act 2023 for a further year to the end of 2025.
Applications for the Help to Buy scheme may be made on a provisional basis as first-time buyers seek to clarify their entitlements in advance of commencing the purchase of a property. An application will only progress to the claim stage if and when the applicant decides to purchase a property that is eligible for the scheme. It is at the claim stage that the property address details become available.
I am advised by Revenue that the number of Help to Buy claims approved since 1 July 2020, with an address in County Carlow is 317, and the number of applicants associated with these claims is 551. These figures include data in relation to both purchases and self-builds.
74. Deputy Pearse Doherty asked the Minister for Finance to outline the provision in insurance law with respect to consent to settle, whereby policyholders must provide consent where an insurer wishes to make a settlement with respect to a third-party claim; and if he will make a statement on the matter. [22789/24]
View answerThere is generally a condition in insurance policies that, under the terms of the contract, an insurer may assume control and deal with the settlement of any claim. This is the contractual position, and there is generally no requirement that an insurer seek a policyholder’s approval before settling a third-party claim.
As the Deputy will be aware, the duties of insurers with respect to claims handling are outlined in Section 16 of the Consumer Insurance Contracts Act 2019, which requires that an insurer shall “notify a consumer of a claim as soon as practicable after the insurer is informed of the claim”. This requirement took effect from 1 September 2020, as provided for under the Consumer Insurance Contracts Act 2019 (Commencement) Order 2020 (S.I. No. 329/2020).
Additionally, under the Consumer Protection Code from the Central Bank of Ireland, insurers must advise the policyholder of “the final outcome of the claim including the details of the settlement”. Where applicable, the policyholder must be informed that the settlement of the claim will affect future insurance contracts of that type.
It is particularly important that insurers engage with their policyholders in the event of a claim, to ensure that they correctly ascertain all the facts of the case and can challenge the claim should sufficient evidence be presented to allow them to do so. While the Central Bank of Ireland does not adjudicate on individual consumer complaints, the Code sets out how a regulated entity must engage with a consumer on complaints, which includes complaints around the handing of insurance claims.
In situations where a person is not satisfied with the actions of an insurance provider in terms of the settlement of a claim, it is advisable that that person make a complaint to the firm's internal complaint resolution process. The Consumer Protection Code requires that if after 40 days the complaint has not been resolved to the customer’s satisfaction, the regulated entity must inform the consumer that they may refer their complaint to the Financial Services and Pensions Ombudsman (FSPO).
75. Deputy Robert Troy asked the Minister for Finance if any changes have been made in relation to the VAT refund order for farmers in place since 1972; and if he will make a statement on the matter. [22685/24]
View answerAs the Deputy is aware questions around the application of the flat-rate farmers refund order have been raised on a number of occasion particularly over how VAT refund claims are being administered and processed by the Revenue Commissioners.
The refund order was originally introduced in 1972 and has seen minor amendments to the type of expenditure covered. In 1993, the order was updated to provide for claims for fencing and in 2012 the order was amended to clarify that certain equipment used for the microgeneration of electricity was covered. The refund order does not provide for any other farming equipment or machinery. It is not possible under the European VAT Directive for the scope of the order to be extended.
I am advised by Revenue that they can only administer the refund order according to the legislation as enacted. The agricultural sector, particularly the Dairy Sector, has evolved significantly since 1972. Since 1972, new products have come onto the market that differ from previous versions and while the function of the products may be identical, there are important differences from a VAT perspective. Revenue will continue to monitor refund claims for new and innovative products as they are received but can only refund expenditure that is within the scope of the legislation.
Revenue is engaging with the farming sector about their concerns on how VAT refund claims are being administered and have met with the ICMSA and IFA on several occasions, most recently with the ICMSA on 22 April and the IFA on 9 May. Revenue officials also attended the Joint Oireachtas Committee on Agriculture, Food and Marine on 8 May. Revenue is currently reviewing submissions from the representative groups. Revenue advise that it is anticipated that an updated guidance document will issue this month once all outstanding information has been received by Revenue.
Finally, the Deputy may wish to note, that it is always open to a farmer to elect to register for VAT in respect of their farming business and claim a full deduction for the VAT they incur on their business costs, subject to rules on deducibility.
76. Deputy Richard Boyd Barrett asked the Minister for Finance if he is planning further taxation measures to address property speculation; and if he will make a statement on the matter. [22767/24]
View answerIncreasing the supply of new homes is key priority for the Government. In 2023, 32,600 new homes were built, 10 per cent higher than the previous year and the highest level since the series began in 2011.
During the first quarter of this year, there were 5,840 new home completions, the second highest level since records began in 2011. In the 12 months to end-March 2024, there were 31,800 new homes completed.
The Government is acutely aware of challenges in the housing market and ensuring there is an adequate supply of suitable zoned and serviced land available for house building is a key priority.
The Residential Zoned Land Tax or RZLT was introduced in Finance Act 2021 and seeks to increase housing supply by encouraging the activation of development on lands which are suitably zoned and appropriately serviced. RZLT, which is an action under Housing for All, aims to bring those lands which have benefitted from investment in services and are capable of being developed forward for housing.
In addition to RZLT, there are a number of additional tax measures in place which also promote the activation of vacant housing, support the supply of homes for sale to individuals and promote the development of challenging sites.
They include:
• the vacant property tax;
• the 10% stamp duty on the bulk acquisition of houses; and,
• the residential development stamp duty refund scheme.
I am sure the Deputy will be aware that it is a longstanding practice for the Minister for Finance not to comment, in advance of the annual Budget, on any tax matters that might be the subject of Budget decisions and announcements.
As the Deputy will appreciate, proposals for any potential tax measures must be assessed carefully and need to be targeted and clear in their policy intent. That said, my Department continues to monitor all aspects of the property market and I will continue to work with my colleagues in Government to ensure that any further interventions in the housing market are appropriately calibrated, represent the best use of scarce public resources and boost the supply of much-needed housing in the State.
77. Deputy James O'Connor asked the Minister for Finance the total number of rent tax credit claims made in Cork for each of the years 2022, 2023 and to date in 2024; and if he will make a statement on the matter. [22688/24]
View answerThe Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
For the tax years 2022 and 2023, the maximum value of the credit is €1,000 per year in the case of a jointly assessed couple, and €500 in all other cases. Finance Act 2023 increased the value of the credit for the 2024 and 2025 tax years to a maximum of €1,500 for a jointly assessed couple and €750 in all other cases.
I am advised by Revenue that the Rent Tax Credit statistics currently available relate only to claims by PAYE taxpayers.
Claims in respect of the 2022 and 2023 years of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. For claims relating to 2024, PAYE taxpayers have the option of claiming the Rent Tax Credit due to them either as rent is incurred or at the end of the year through their Income Tax return.
Self-assessed taxpayers claim the credit in the year following the payment of rent through their annual Income Tax return Data on these claims for 2022 is not yet available. Revenue advise me that it will become available in the coming months, once the self-assessed tax returns for that year are fully analysed.
Rent Tax Credit claims are made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.
Data for claims relating to PAYE taxpayers for Cork county are as follows:
• 30,749 taxpayer unit claims for 2022,
• 26,484 taxpayer unit claims for 2023,
• 5,416 taxpayer unit claims for 2024.
This gives a total of 62,649 claims for all years (as of May 7) for Cork county.
78. Deputy Matt Carthy asked the Minister for Finance for an update on negotiations at a European level regarding the Capital Markets Union; and if he will make a statement on the matter. [22781/24]
View answerThe Capital Markets Union (CMU) is an ongoing and long term project which aims to deepen and further integrate Europe’s capital markets, support growth and enhance the resilience of the financial system. For Ireland, CMU has the potential to widen the sources of available funding for our companies as well as provide opportunities for our export-oriented financial services sector to contribute to a more dynamic and resilient EU economy. Accordingly, Ireland has also supported the CMU project, putting forward a vision for a European capital markets that can exploit the benefits of existing market places and infrastructures within Member States.
The CMU Action Plan was re-launched in 2020. It proposes 16 legislative and non-legislative actions to deliver on three key objectives:
Support a green, digital, inclusive and resilient economic recovery by making financing more accessible to European companies
Make the EU an even safer place for individuals to save and invest long-term
Integrate national capital markets into a genuine single market
The measures set out in the Action Plan have largely been delivered at EU level and, for legislative measures where EU negotiations have concluded, will require transposition into national law as well as various implementation actions by the EU institutions.
One of the key objectives of the CMU Action Plan 2020 was to make the EU an even safer place for citizens to invest in the long term. The Retail Investment Strategy, which has been under negotiation since 2023, aims to achieve that goal and encourage greater participation in EU capital markets, which has traditionally been lower than in other jurisdictions, such as the United States – even though Europeans have very high savings rates. Boosting the CMU is also an essential means to channel private funding into the European economy and to fund the green and digital transitions. The Retail Investment Strategy makes a range of targeted changes to the relevant sectoral legislation to, inter alia, improve disclosures, protect retail investors from misleading marketing communications, address bias in the advice process, and ensure investment products deliver value for money.
It is widely recognised that, notwithstanding the significant progress made during the current EU legislative term in advancing the CMU, more remains to be done. The Eurogroup (in inclusive format) embarked on a thematic assessment on the future of CMU and in March 2024 issued a statement which sets out priority areas of action and concrete measures for taking forward the CMU. This statement may be accessed here:
www.consilium.europa.eu/en/press/press-releases/2024/03/11/statement-of-the-eurogroup-in-inclusive-format-on-the-future-of-capital-markets-union/
The Eurogroup has had extensive discussions on the possible direction of the CMU beyond the current legislative cycle. This resulted in the Eurogroup CMU statement being agreed and presented to Leaders at the Euro Summit on 22 March. The Eurogroup President issued a statement which included a high level work programme on the implementation of the recommendations proposed in the March 2024 statement. This high level implementation roadmap may be accessed here:
www.consilium.europa.eu/media/2pwbdeil/egplus_cmu_wp_final.pdf
It is the collective responsibility of the EU institutions, the Members States, including its regulatory authorities, and capital markets participants, to ensure that further progress is made on the CMU. Ireland will continue to play a constructive and active role in this important endeavour.
79. Deputy Aindrias Moynihan asked the Minister for Finance if he is aware of difficulties persons are having in securing bridging finance products from the banking sector to secure a new home for downsizing while they are awaiting sale of their current home; and if he will make a statement on the matter. [22720/24]
View answerThere are a number of regulatory measures which apply to the provision of new residential mortgage credit, including bridging finance for such a purpose, to consumers. These include the European Union (Consumer Mortgage Credit Agreements) Regulations 2016 and the Central Bank Consumer Protection Code (2012).
These measures place a number of obligations on lenders in relation to the provision of residential mortgage credit including the requirement to:-
• where relevant, obtain relevant information from the borrower on his/her needs and objectives, personal circumstances and financial situation;
• assess the affordability of credit and the suitability of a product or service based on the individual circumstances of the borrower;
• provide credit only where the creditworthiness assessment indicates that the borrower is likely to meet his/her obligations in the manner required under the credit agreement.
Within the parameters of this regulatory framework, the decision to provide a particular loan product and to grant an individual application for mortgage credit is a commercial decision to be made by the individual regulated entity.
I have been informed that the Central Bank of Ireland understands that some providers offer bridging finance, but not all providers offer this service. Within the applicable regulatory framework, it is a matter for each lender to set its own credit policies and to make its own lending decisions on applications for mortgage or other kinds of credit.
80. Deputy Pearse Doherty asked the Minister for Finance if he or his Department undertook a review of the 10% stamp duty with respect to the bulk purchase of residential property; and if he will make a statement on the matter. [22788/24]
View answerThe Government is acutely aware that the bulk purchase of homes deeply affects aspiring owner-occupiers and first time buyers, and has introduced numerous measures to address this. This has been addressed both through disincentivising bulk purchases, and through positive steps taken to increase the housing supply. The Department of Finance has been routinely monitoring this area and engaging with Revenue on this matter through continually reviewing the latest statistics on the impact of the higher stamp duty rate.
The higher stamp duty rate has applied to less than 1% of residential property transactions between May 2021 to end-2023, and has applied to less than 2% of total new dwellings completed since 20 May 2021. Data shows that a yield of approximately €40 million has been collected in this category from 2021 to 2023.
As the Deputy is aware, Section 28 Guidelines were introduced by the Minister for Housing, Local Government and Heritage in 2021, which aim to provide an ‘owner-occupier’ guarantee by ensuring that new ‘own-door’ houses and duplex units in housing developments can no longer be bulk-purchased by institutional investors in a manner that causes the displacement of individual purchasers or social and affordable housing, including cost-rental. From the introduction of these guidelines to December 2023, 40,827 homes were granted planning permission with conditions prohibiting the bulk purchase by, or multiple sale to, a single purchaser.
The Government has also responded to challenges in the housing market through Housing for All, which is the Government’s plan to boost the supply of housing to 2030, to increase availability and affordability of housing, and to create a sustainable housing system into the future. The Government continued to fulfil this commitment through Budget 2024, which brought forward a record €5.1 billion budget for capital investment in housing. This includes €2.6 billion in exchequer funding, €978 million in Land Development Agency (LDA) funding, and €1.5 billion in Housing Finance Agency (HFA) funding.
The latest CSO data on planning permissions shows that nationally, 41,225 dwelling units were granted planning permission in 2023, an increase of approximately 21% per cent from 2022. 11,181 residential planning permissions were granted for Q4 2023, an increase of 47% per cent compared to the Q4 2022 period.
Given the actions the Government has taken against bulk purchasing of residential property, and taking into consideration the positive results seen through Housing for All, I do not have immediate plans amend the higher stamp duty rate on certain purchases of residential property. However, as with all areas of tax policy, stamp duty on bulk purchases of residential property will be kept under review throughout the annual budgetary process.
81. Deputy Pauline Tully asked the Minister for Finance the number of persons currently on the waiting list for the Disabled Drivers Medical Board of Appeal; the timeframe for this waiting list to be cleared; what actions are being taken to implement a new modern, fit-for-purpose vehicle adaptation scheme; and if he will make a statement on the matter. [22780/24]
View answer97. Deputy Catherine Connolly asked the Minister for Finance further to Parliamentary Question No. 40 of 10 April 2024, the status of his Department's work to develop a new scheme to replace the disabled drivers and disabled passengers scheme with a modern, fit-for-purpose vehicle adaptation scheme as recommended by the National Disability Inclusion Strategy Transport Working Group; the details of the note submitted by his Department to the senior officials group in January 2024 outlining a proposal for a replacement scheme; and if he will make a statement on the matter. [22679/24]
View answer107. Deputy Pauline Tully asked the Minister for Finance for an update on the actions being taken to implement the proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the disabled drivers and disabled passengers scheme; and if he will make a statement on the matter. [22779/24]
View answerI propose to take Questions Nos. 81, 97 and 107 together.
First, I can report that as of 13 May 2024 there are 708 appellants on the waiting list for the DDMBA. 321 appellants have been assessed since the appeals process recommenced. Of these, 203 were successful. The Board has prioritised the waiting list using clinically-based criteria. They are working to address the backlog as quickly as possible.
In this regard, it is important to be aware that I have no role in relation to the granting or refusal of Primary Medical Certs and the HSE and the Medical Board of Appeal must be independent in their clinical determinations.
Second, my Department and I share concerns that the Disabled Drivers and Disabled Passengers Scheme or DDS is no longer fit-for-purpose and believe it should be replaced with a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual.
However, this is very much a matter for Government as whilst my Department has oversight of the DDS, I do not have responsibility for disability policy.
In that context, any further changes to the existing DDS would run counter to the National Disability & Inclusion Strategy or NDIS proposals to entirely replace the scheme with a modern, fit-for-purpose vehicular adaptation scheme.
The final report of the NDIS Transport Working Group's review of mobility and transport supports including the DDS, endorsed proposals for a modern, fit-for-purpose vehicle adaptation scheme in line with international best practice that would replace the DDS.
Under the aegis of the Department of Taoiseach officials from relevant Departments and agencies are meeting to discuss the issues arising from the NDIS report and to map a way forward. One of these issues which is being examined is how the DDS can be replaced. Four meetings of the group have been held, in July, November, December 2023; and March 2024.
The Department of Finance submitted a note to the group with my approval in mid-January 2024. This note outlines a proposal for a replacement scheme for the DDS which would be a needs-based, grant-led approach for necessary vehicle adaptations that could serve to improve the functional mobility of the individual. This proposal is in line with what the NDIS Transport Working Group Report endorsed. Further consideration is being given to the principles and parameters for a new scheme in line with best international practice.
83. Deputy Pearse Doherty asked the Minister for Finance for an update on his Department's strategy regarding financial scams and fraud; and if he will make a statement on the matter. [22791/24]
View answerAs Minister for Finance I have no supervisory or investigative role in relation to fraud which is a criminal offence and falls under the remit of the Minister for Justice.
However, my Department is drafting a National Payment Strategy (NPS) that, inter alia, is considering actions to prevent fraud, which is a critical issue and something that was not considered in the 2013 National Payments Plan. While EU legislation governs much of the payments area it is important that the NPS examines payment fraud to identify further preventative domestic measures.
On the 12th December 2023, I launched a public consultation seeking stakeholder’s views on the NPS for Ireland. Also, my Department held a workshop in May to hear from stakeholders in the payments system. This provided an opportunity to present the findings of the consultation as well as discuss next steps on what could be done to limit the impacts of fraud on consumers and businesses. My Department will develop the NPS and the respective actions to be published by the end of 2024.
Also, ‘the Hamilton Report’ published by the Minister for Justice in 2020, contained recommendations focusing primarily on legislative, structural, and resourcing measures to enhance the capacity of multi-agency enforcement and the prevention of corruption and white-collar crime, including fraud. It also recommended the creation of the Advisory Council Against Economic Crime and Corruption, established by Government in 2022. The Council is currently drafting a national strategy on economic crime and Anti-Corruption. The creation of the Advisory Council and the NPS illustrates the whole-of-government commitment to tackling all forms of economic crime, including fraud.
84. Deputy Pádraig O'Sullivan asked the Minister for Finance for a sectoral breakdown of the number of businesses with warehoused debt that did not engage with the Revenue Commissioners before the 3 May deadline in terms of number of businesses and value of warehoused debt, in tabular form; and if he will make a statement on the matter. [22710/24]
View answerThe Tax Debt Warehousing Scheme was introduced in May 2020 to provide a vital liquidity support to businesses impacted by Covid-19 trading restrictions. The scheme allowed businesses to temporarily ‘park’ eligible taxes, on an interest-free basis, until 1 May 2024. At its peak in January 2022, there was €3.2 billion debt in the warehouse, the vast majority of which related to VAT and payroll taxes deducted by employers from their employees.
The scheme has now ended. Over 11,000 customers, with debt balances greater than €500, had not engaged with Revenue to address their warehoused debt by 1 May. Customers who had not engaged with Revenue to address their warehoused debt received a demand notice on 8 May 2024 giving one final opportunity to address their debt and avail of the 0% interest rate on that debt. With effect from 15 May, Revenue’s systems were updated to automatically apply the standard interest rates of 8% and 10% on any outstanding warehoused debt. The next step for those who haven’t engaged on foot of the demand notice is that Revenue will start its collection process. Final demands are now issuing, giving seven days’ notice of enforcement action, unless there is immediate engagement by the taxpayer.
Revenue is currently working through several hundred applications for Phased Payment Arrangements (PPAs) that have been received over the last two weeks. When this process is complete, Revenue will conduct a full analysis of the outstanding debt cases, including sectoral analysis. This will be published by 31 May 2024.
It is important to note that to retain the 0% interest rate in an agreed PPA, it remains a key condition that current taxes are filed and paid as they fall due, and that all monthly PPA instalments are honoured as agreed. Any taxpayer experiencing temporary cashflow difficulties that impact on their ability to meet their tax obligations on a timely basis, including scheduled monthly payments, should engage with Revenue at the earliest opportunity. Revenue will always work with viable businesses to agree mutually acceptable payment solutions, such as a payment deferral or a payment break, rather than deploying debt collection and enforcement options.
Finally, I wish to acknowledge the significant levels of engagement by taxpayers and their agents in addressing their warehoused debt in the run-up to 1 May 2024. I also wish to acknowledge the work of the Collector General’s Division in Revenue and the success of the scheme in supporting viable businesses and employments during an unprecedented and exceptionally difficult trading environment for businesses caused by the Covid-19 pandemic.
85. Deputy Cormac Devlin asked the Minister for Finance when he will legislate to ensure access to cash; and if he will make a statement on the matter. [22617/24]
View answerThe Department of Finance's Retail Banking Review, published in November 2022, concluded that cash, despite a decline in its usage, remains an important element of the payments system and the broader economy and it is essential that cash remains readily available to customers through ATMs and other means across the country.
The Review recommended that the Department of Finance should develop Access to Cash legislation with the initial objective of developing criteria that would secure access to cash at about the levels prevailing in December 2022.
Accordingly, on the 23rd of January, I published the General Scheme of the Access to Cash Bill 2024 to establish a framework to ensure that the future evolution of cash infrastructure in the State will be managed in a fair, orderly, transparent, and equitable manner.
Criteria will be prescribed on a regional basis to require that a percentage of the population must be within a distance of no more than 10 kilometres from an ATM and that there must be a minimum number of ATMs per 100,000 people.
There will be a separate population criterion, also based on a distance of no more than 10 kilometres, in relation to cash service points. These are defined as locations where cash can be lodged and withdrawn and where there is in-person assistance available during normal business hours. Bank branches and post offices, thanks to An Post's agency relationship with two large retail banks, satisfy this definition.
There will be separate criteria for each of the eight NUTS3 regions in the State. NUTS3 regions are a statistical unit of classification used by the European Union.
Ensuring compliance with the criteria will be the responsibility of designated entities that exceed prescribed percentage shares of current accounts and household deposits, which cannot in any event be set lower than 5%.
Currently, the three large retail banks exceed the proposed percentage shares.
The legislation will provide that these criteria can be amended by the Minister following a review of the criteria by the Central Bank. Reviews will have to be carried out following the publication of Census data or if cash demand drops by 15% in a calendar year compared to the previous year. Reviews may also be carried out at the request of the Minister or on the Central Bank’s own initiative.
In carrying out a review, the Central Bank must take must take account of a number of factors, including the level of cash demand, population changes, operational costs, and financial inclusion.
These provisions ensure that the criteria can be adjusted in response to the demand for cash in the State, and will ensure that the framework being put in place is adaptable in relation to demand.
The drafting of the Access to Cash Bill is a priority, and it is being progressed as such. I would like to highlight my appreciation for the input of the Joint Committee on Finance, Public Expenditure and Reform and Taoiseach, who promptly published their pre-legislative scrutiny report on the Access to Cash Bill.
The report of the Committee is welcomed, and the recommendations therein will be considered as the drafting of the Bill continues.
Subject to the completion of drafting and a required consultation with the European Central Bank, I intend to seek Government approval to publish the Bill prior to the end of July.
86. Deputy Jim O'Callaghan asked the Minister for Finance if he will consider increasing fines for tobacco smuggling; and if he will make a statement on the matter. [22750/24]
View answerThe Deputy should note that fines for the sale of illicit tobacco are contained in Tobacco Products Tax (TPT) legislation, as set out in Chapter 3 of Part 2 of the Finance Act 2005 (as amended). Sections 78 and 78A of the Act provide that, without prejudice to any other penalty, any person convicted of an offence in relation to the illegal selling of unstamped tobacco products or of illicit production, storage or delivery of such products, or for fraudulent use of tax stamps shall be liable to the following sanctions:
• On Summary Conviction – a fine of €5,000 or a term of imprisonment not exceeding 12 months, or both.
• On Conviction on Indictment – a fine not exceeding €126,970 or imprisonment for a term not exceeding 5 years, or both.
Fines for summary offences are now set at the maximum level that may be applied in accordance with the District Court Guidelines. Following a review in 2010, fines for indictable level offences were increased tenfold from €12,695 to €126,970. Where the value of the excisable products concerned is greater than €250,000, then a fine not exceeding three times the value of the excisable products concerned could be imposed. The discretion of the court to impose a fine and/or term of imprisonment not exceeding 5 years was retained. The amendment sought to ensure that the fines which may be imposed better reflected the seriousness of the offences involved and served as an effective deterrent.
Further sanctions are set out in General Excise law. Section 119 of the Finance Act 2001, as amended, sets out additional penalties for tobacco smuggling. Where the value of the goods concerned is greater than €250,000, including any taxes chargeable thereon, an amount not exceeding three times their value may be imposed and/or a prison sentence of up to 5 years.
Government has ensured through the Finance Acts over the years that Revenue has the relevant statutory powers to tackle the illicit trade. I know that Revenue is aware of the threat that tobacco smuggling poses to health, to legitimate business interests and to the Exchequer and I commend the relevant State agencies for their work in this area.
Finally, in relation to an increase in fines, the position will be kept under review. It should also be noted that I am open to considering proposals from Revenue that will address new or emerging risks, which cannot be addressed through the current and significant legislative framework in place in regard to tobacco smuggling.
87. Deputy Robert Troy asked the Minister for Finance for an update on the help-to-buy scheme; if he has any plans to change the loan-to-value ratio under the scheme; if the upper price limit will be revised; and if he will make a statement on the matter. [22686/24]
View answerThe Help to Buy (HTB) Scheme was introduced in 2017 with the purpose of assisting first-time buyers with the deposit required to purchase or self-build a new house or apartment to live in as their home. The relief is only available in respect of new builds, with a view to increasing the supply of new housing and stimulating demand.
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. Section 477C of the Taxes Consolidation Act outlines the definitions and conditions that apply to the HTB scheme and provides that the amount of relief available shall be the lesser of:
• €30,000,
• 10 per cent of the purchase value of a new home/self-build 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 priority aim of Government policy. 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 been previously been used as a dwelling. Additionally, the purchase value/approved valuation of the property must not exceed €500,000.
To 1 May 2024, (the latest data is available for) 47,596 HTB claims have been made, of which 89% of claims were for properties which did not exceed €450,000 in value.
One condition of the scheme is that a qualifying first-time purchaser (“FTP”) must take out a loan in an amount equal to at least 70% of the purchase value of the property. In the case of a self-build property, the purchase value is the approved valuation of the self-build property, as approved by the lender in accordance with the Central Bank’s macro prudential rules. These rules stipulate the valuation should include the site value.
The HTB scheme, was initially intended to be limited to persons who had mortgages with a minimum LTV of 80%. However, Central Bank data indicated that a sizable number of first-time buyers take out a mortgage with a LTV of less than 80%. As such, it was decided to amend the scheme in the subsequent Finance Bill to set the minimum LTV at 70% so as 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.
Individuals who are in the position of being able to avail of a mortgage at a lower loan-to-value ratio than 70% are considered to have sufficient resources to meet the deposit requirements of the macro-prudential rules and thus less in need of assistance from the Exchequer. Lowering the LTV ceiling would therefore only increase dead-weight in the scheme. In fact, the independent review of the scheme which took place in 2022 recommended that the LTV be increased to 80% for purchasers availing of HTB.
While the 2022 review included a number of recommended amendments to the scheme, it did not recommend an increase to the €500,000 house price limit. Ultimately, following consideration of the review, the decision taken in Budget 2024, and subsequently implemented through Finance Act 2023, was to extend HTB until the end of 2025 without amending the house price limit.
It remains the case that, as with any tax expenditure, HTB will be kept under regular review. However, I have no plans at present to change loan to ratio value under the scheme or to extend the scheme to properties valued at over €500,000.
88. Deputy Niamh Smyth asked the Minister for Finance the number of eligible claims currently being made for the rent tax credit in each of counties Cavan, Monaghan, Donegal, Sligo, Leitrim, Roscommon, Mayo and Galway; and if he will make a statement on the matter. [22553/24]
View answerThe Rent Tax Credit, as provided for in section 473B of the Taxes Consolidation Act 1997 (TCA 1997), was introduced by the Finance Act 2022 and may be claimed in respect of qualifying rent paid in 2022 and subsequent years to end-2025.
For the tax years 2022 and 2023, the maximum value of the credit is €1,000 per year in the case of a jointly assessed couple, and €500 in all other cases. Finance Act 2023 increased the value of the credit for the 2024 and 2025 tax years to a maximum of €1,500 for a jointly assessed couple and €750 in all other cases.
I am advised by Revenue that the Rent Tax Credit statistics currently available relate only to claims by PAYE taxpayers.
Claims in respect of the 2022 and 2023 years of assessment can be made by PAYE taxpayers by submitting an Income Tax return for that year. For claims relating to 2024, PAYE taxpayers have the option of claiming the Rent Tax Credit due to them either as rent is incurred or at the end of the year through their Income Tax return.
Self-assessed taxpayers claim the credit in the year following the payment of rent through their annual Income Tax return. Data on these claims for 2022 is not yet available. Revenue advise me that it will become available in the coming months, once the self-assessed tax returns for that year are fully analysed.
Rent Tax Credit claims are made are on a ‘taxpayer unit’ basis. A taxpayer unit is either an individual with any personal status who is singly assessed or a couple in a marriage or civil partnership who have elected for joint assessment.
Data for claims relating to PAYE taxpayers as of 7 May 2024 for each of Cavan, Monaghan, Donegal, Sligo, Leitrim, Roscommon, Mayo and Galway are as follows:
Cavan
• 2,289 taxpayer unit claims for 2022,
• 2,178 taxpayer unit claims for 2023,
• 378 taxpayer unit claims for 2024.
• 4,845 claims for all years.
Monaghan
• 1,971 taxpayer unit claims for 2022,
• 1,831 taxpayer unit claims for 2023,
• 334 taxpayer unit claims for 2024.
• 4,136 claims for all years.
Donegal
• 3,431 taxpayer unit claims for 2022,
• 3,043 taxpayer unit claims for 2023,
• 620 taxpayer unit claims for 2024.
• 7,094 claims for all years.
Sligo
• 3,148 taxpayer unit claims for 2022,
• 2,583 taxpayer unit claims for 2023,
• 519 taxpayer unit claims for 2024.
• 6,250 claims for all years.
Leitrim
• 872 taxpayer unit claims for 2022,
• 738 taxpayer unit claims for 2023,
• 159 taxpayer unit claims for 2024.
• 1,769 claims for all years.
Roscommon
• 1,763 taxpayer unit claims for 2022,
• 1,634 taxpayer unit claims for 2023,
• 334 taxpayer unit claims for 2024.
• 3,731 claims for all years.
Mayo
• 3,964 taxpayer unit claims for 2022,
• 3,552 taxpayer unit claims for 2023,
• 737 taxpayer unit claims for 2024.
• 8,253 claims for all years.
Galway
• 19,358 taxpayer unit claims for 2022,
• 15,874 taxpayer unit claims for 2023,
• 3,462 taxpayer unit claims for 2024.
• 38,694 claims for all years.
