Dáil Éireann Debate, Thursday - 25 October 2012
65. Deputy Martin Heydon asked the Minister for Finance if his attention has been drawn to the fact that some of the major banks have as yet still not passed on the increased mortgage interest relief granted as part of last years budget to customers; the action he has taken or plan to take in this matter; when he expects it to be resolved; and if he will make a statement on the matter. [47136/12]
View answerThe Revenue Commissioners administer mortgage interest relief through the Tax Relief at Source [TRS] system. Mortgage interest relief is provided to mortgage holders via on-going electronic data file transfers between Revenue and each of the 132 individual qualifying lenders. Both Revenue and the lenders were required to upgrade their IT systems to facilitate payment of the new 30% rate announced in Budget 2012, and while Revenue upgraded its IT system in December 2011, the same speed of upgrade did not happen across all of the lenders. At this point there is only one lender who has not completed the necessary upgrades to facilitate payment of the new 30% rate to its customers.
Revenue is currently in direct contact with that lender to ensure the 30% rate is paid to its customers within the current year and applied retrospectively. The lender has assured Revenue that its IT system will be upgraded within the current tax year and the 30% rate will be paid to its customers. It should be noted that the customers affected have continued to receive mortgage interest relief at the old 25% rate while the lender’s IT system upgrades are being completed.
