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Tax Reliefs

Dáil Éireann Debate, Wednesday - 18 April 2012

Wednesday, 18 April 2012

Questions (230)

John O'Mahony

Question:

223 Deputy John O’Mahony asked the Minister for Finance the reason a person (details supplied) who purchased a house in 2008 does not qualify for increased tax relief at source; and if he will make a statement on the matter. [19150/12]

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Written answers

The position is as I stated in my Budget day speech, that the new measure fulfils the Government's commitment contained in its Programme for Government to increase the rate of Mortgage Interest Relief to 30 per cent for first-time buyers who took out their first mortgage in the period 2004 to 2008. I have sought to be as flexible as possible within the constraints pertaining. Under the current tax legislation Mortgage Interest Relief is granted from the date the first mortgage interest payment is made. The legislation has been amended for this particular measure to also include mortgage draw-down as a qualifying event for the rate increase. This means that a mortgage holder will qualify for the increased rate if they made their first mortgage interest payment in the period 2004 to 2008 or if they drew down their mortgage in that period.

Unfortunately, based on the information provided, the person in question does not qualify for the increased rate of relief. However, he/she should still continue to qualify for the current rates of relief for first-time buyers. It should be noted that Mortgage Interest Relief is set to be abolished at the end of 2017.

As with all time limited reliefs, there will always be people who just miss out, and that is why I have been as flexible as possible with the legislation. However, I do not intend to extend the parameters of the measure any further as it would become less targeted and more costly.

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