Wednesday, 25 January 2012

Questions (64)

Terence Flanagan

Question:

59 Deputy Terence Flanagan asked the Minister for Finance the position regarding mortgage interest relief (details supplied); and if he will make a statement on the matter. [4267/12]

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Written answers (Question to Minister for Finance)

As I announced in the Budget, the proposed new 30% rate of tax relief comes into effect in respect of the 2012 tax year and subsequent tax years. The position is that the tax relief, including the proposed new 30% rate of relief, in respect of interest paid on qualifying loans is given by qualifying lenders.

I am advised by the Revenue Commissioners that they have already, in advance of the passing of the Finance Act, been in contact with all qualifying lenders to ensure that the necessary software changes to the tax relief at source (TRS) system will be made to cater for the new 30% rate of tax relief and to ensure that, when the full detail of the legislation is available, the relief can be passed on to borrowers by qualifying lenders without undue delay.

All qualifying lenders have been requested to confirm when they will be in a position to work with Revenue to implement the Budget 2012 mortgage interest relief changes. However, it should be noted that the speed with which the software changes necessary to grant the new 30% rate of tax relief to borrowers can be developed and implemented by lenders may vary from lender to lender.