Dáil Éireann Debate, Thursday - 11 October 2012
50. Deputy Michael McGrath asked the Minister for Finance if he plans to review the decision to end mortgage interest relief for first time buyers at the end of 2012; and if he will make a statement on the matter. [43971/12]
View answer51. Deputy Michael McGrath asked the Minister for Finance if he will set out in tabular form the number of persons who have received mortgage interest relief each year for the past 10 years; the total amount provided in mortgage interest relief each year for the past 10 years; and if he will make a statement on the matter. [43972/12]
View answerI propose to take Questions Nos. 50 and 51 together.
The position is as I stated in my Budget day speech and in the press conference of 8 February 2012 to announce the publication of the Finance Bill 2012 that mortgage interest relief for principal private residences will no longer be available to house purchasers who purchase after the end of 2012 and will be fully abolished from 2018. This means that the loan will have to be drawn down by 31 December 2012 in order to qualify for this relief. I have no plans to review this decision.
A qualifying loan for mortgage interest relief is one which without having been used for any other purpose, is or are used in the purchase, repair, development or improvement of a claimant’s principal private residence. With regards to the cost and the numbers availing of the relief, I am informed by the Revenue Commissioners that the cost to the Exchequer of mortgage interest relief for principal private residences by way of tax relief at source (TRS) and the associated number of claimants in the past ten years 2003 to 2012 inclusive is as follows:
|
Tax Year |
Numbers |
Cost €m |
|
2003 |
443,800 |
221 |
|
2004 |
447,400 |
232 |
|
2005 |
587,800 |
279 |
|
2006 |
668,400 |
352 |
|
2007 |
720,000 |
543 |
|
2008 |
778,100 |
705 |
|
2009 |
782,700 |
486 |
|
2010 |
490,900 |
375 |
|
2011 |
488,000* |
357 |
|
2012 (9 months) |
Not available |
300 |
*These figures are provisional and subject to revision.
The expected cost to the Exchequer of tax relief allowed for mortgage interest in the 12 months of 2012 is provisionally estimated at €414 million. Numbers are rounded to nearest hundred and costs are rounded to nearest million.
