The position is that tax relief — at varying rates and subject to certain ceilings — is available in respect of interest payable on a qualifying home loan. A qualifying home loan is a loan used by an individual in the purchase, repair, development or improvement of his or her principal private residence. On the assumption that the Deputy's Question relates to a scenario wherein the parents took out a loan of €25,000 and used that loan to assist a son or daughter in the purchase of a private residence, then—
(a) if the residence purchased by the son/daughter is the principal private residence of both the parents and the son/daughter (i.e. the parents live with the son/daughter in that residence), then—
(i) the parents may claim tax relief on the interest paid by them on the loan of €25,000; and
(ii) the son/daughter may claim tax relief on the interest paid on the loan taken out by him/her to purchase the residence,
(b) if the residence purchased by the son/daughter is not the principal private residence of the parents but is the principal private residence of the son/daughter, then –
(i) the parents may not claim tax relief on the interest paid by them on the loan of €25,000; and
(ii) the son/daughter may claim tax relief on the interest paid on the loan taken out by him/her to purchase the residence.
Where the parents cannot claim tax relief on the interest paid on a loan used to assist a son/daughter to purchase of a private residence, I am further informed by the Revenue Commissioners that the Income Tax Acts do not provide for any other tax relief in respect of either the loan or the interest paid on that loan.