Mortgage Interest Relief Extension

Dáil Éireann Debate, Wednesday - 24 October 2012

Wednesday, 24 October 2012

Questions (53)

Michael Healy-Rae

Question:

53. Deputy Michael Healy-Rae asked the Minister for Finance if he will amend legislation relating to tax relief for mortgage interest payments to cater for situations in which a mortgage has been taken out prior to the 31 December 2012, but the mortgage is to be drawn down on a stage payment basis; and if he will amend the law to cater for situations in which building work has commenced prior to 31 December and a first stage payment has been drawn down on the mortgage prior to 31 December (details supplied); and if he will make a statement on the matter. [46681/12]

Written answers

Minister for Finance

As the Deputy is aware, tax relief on interest paid on all qualifying home loans is being phased out. Tax relief on interest paid on qualifying home loans taken out in the period 1 January 2004 to 31 December 2012 will continue up to an including the 2017 tax year. However, tax relief is not available on interest paid on loans taken out on or after 1 January 2013. Likewise, where a residence is under construction, only the interest paid on monies drawn down on or before 31 December 2012 will qualify for tax relief. A qualifying loan for mortgage interest relief is one which without having been used for any other purpose, is used in purchase, repair, development or improvement of a claimant’s principal private residence.

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 within the current budgetary constraints. However, I do not intend to extend the parameters of the measure any further.