Thursday, 8 November 2012

Questions (102)

Patrick O'Donovan

Question:

102. Deputy Patrick O'Donovan asked the Minister for Finance his plans for a person (details supplied) in County Wexford who can avail of mortgage interest relief only on part of the overall mortgage; and if he will make a statement on the matter. [49211/12]

View answer

Written answers (Question to 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. Revenue have requested that full details in relation to the person involved, including his pps number, and also details relating to the mortgage loan be provided so that a comprehensive reply to this question can be given.

However, in general, I should point out that 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 and 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 the purchase, repair, development or improvement of a claimant’s principal private residence.