Tuesday, 17 July 2012

Questions (117)

Michael McGrath

Question:

121 Deputy Michael McGrath asked the Minister for Finance when the qualifying mortgage customers of Ulster Bank will benefit from the increase in mortgage interest relief in the Finance Act 2012; if he will confirm the number of customers affected; and if he will make a statement on the matter. [35251/12]

View answer

Written answers (Question to Minister for Finance)

This is a matter for the Revenue Commissioners who are responsible for the administration of mortgage interest relief through the tax relief at source (TRS) system. I am advised by Revenue, that they have had on-going contacts and discussions at a senior level with Ulster Bank towards expediting the necessary software changes by Ulster Bank to their TRS systems so that the 30% rate is applied for appropriate mortgage account holders. There are approximately 37,000 Ulster Bank accounts impacted by the change.

Revenue is currently awaiting clarification and confirmation from Ulster Bank on a number of issues regarding the scheduling and testing of the software changes, including, in the light of those clarifications and confirmation, the envisaged implementation date. As an interim relieving measure a 25% rate already available in the ICT systems was applied to all eligible accounts from January. The software changes to be implemented will allow for the passing on of the remaining 5% to mortgage account holders and the balance of relief due since 1 January.