Section 244 Taxes Consolidated Act, 1997 provides for the granting of interest relief on certain home loans. A separated person who previously held a mortgage or a joint mortgage, and who subsequently obtains a new mortgage in his or her own name, to purchase a family home which is his or her principal place of residence, will qualify for interest relief subject to the limits, reductions and deductions applicable to that of a single person.
As regards the first five years of claiming mortgage relief a separated or single person is entitled to relief of 100 per cent of mortgage interest subject to a limit of £2,500 per annum. In all other cases a single or separated person is entitled to relief of 80 per cent of mortgage interest, subject to a limit of £2,500, less a de minimus of £100. This means that for such a separated or single person the maximum amount of mortgage interest relief allowable is £1,900.
Where individuals separate and acquire a new residence, and the first time buyers' relief five year span has not expired, the remaining unutilised years can be used for the purposes of determining the appropriate limits. This means that separated persons can benefit from the 100 per cent relief for the first year of the new mortgage, provided the separation takes place within five years of first claiming mortgage interest relief. I do not envisage making any changes to the method of calculating mortgage interest relief which will impact on the situation to which the Deputy refers.
