I assume the Deputy is referring to the tax relief that is available to borrowers who took out qualifying loans in 2009.
Tax relief is available up to and including the tax year 2017 on the interest paid on qualifying home loans taken out in the period 2004 to 2012.
There are ceilings on the amount of interest that can qualify for relief, which vary depending on whether the claimant is a married/civil partnership/widowed person or a single person. In addition, the interest ceiling can vary depending on if the individuals are in the first seven tax years of their qualifying loan. In such circumstances, individuals are entitled to higher interest ceilings, which are known as the ‘first time buyer’ ceilings. For such individuals, the ceilings are €10,000 per annum for a single individual and €20,000 per annum for married couples and civil partnerships. For individuals that are in their eighth or subsequent years of their qualifying loan, lower interest ceiling apply, known as the ‘non-first-time buyer’ ceilings. For such individuals, the ceilings are €3,000 per annum for a single individual and €6,000 per annum for married couples and civil partnerships. The same ceilings apply for mortgages taken out in 2009 as apply in other years.
Furthermore the rules relating to the rates at which relief is given vary depending on whether the claimant is a “First Time Buyer” or a “non First Time Buyer”. These rules apply to mortgages taken out in 2009 in the same way as they apply to loans taken out in other years, with one exception. The exception is that a special 30% rate of relief is available for the tax years 2012 to 2017 inclusive, in respect of qualifying interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2008 to purchase an individual’s:
- first qualifying residence, or
- second or subsequent qualifying residence but only where the first qualifying residence was purchased on or after 1 January 2004.
For clarification purposes I have set out the tables below which illustrates the interest ceilings and reliefs that apply to single an individual or a married couple/civil partnership that took out a qualifying loan in 2009 as a first time buyer and as a non-first-time buyer.
Single and Married couple/Civil partnership that took out a qualifying loan in 2009 as a First-Time Buyer
|
Year
|
Interest Ceilings
|
Rate of Relief
|
|
2009
|
€10,000/€20,000 for single and married/civil partnership
|
25%
|
|
2010
|
€10,000/€20,000 for single and married/civil partnership
|
25%
|
|
2011
|
€10,000/€20,000 for single and married/civil partnership
|
22.5%
|
|
2012
|
€10,000/€20,000 for single and married/civil partnership
|
22.5%
|
|
2013
|
€10,000/€20,000 for single and married/civil partnership
|
22.5%
|
|
2014
|
€10,000/€20,000 for single and married/civil partnership
|
20%
|
|
2015
|
€10,000/€20,000 for single and married/civil partnership
|
20%
|
|
2016
|
€3,000/€6,000 for single and married /civil partnership
|
15%
|
|
2017
|
€3,000/€6,000 for single and married /civil partnership
|
15%
|
|
Year
|
Interest Ceilings
|
Rate of Relief
|
|
2009
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2010
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2011
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2012
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2013
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2014
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2015
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2016
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
|
2017
|
€3,000/€6,000 for single and married/civil partnership
|
15%
|
As the Deputy is aware, the Programme for Government contained a very specific commitment to examine a proposal to increase mortgage interest relief to 30% for first time buyers who bought between 2004 and 2008. In Budget 2012, this commitment was fulfilled. It is not my intention to widen the parameters of the commitment contained in the Programme for Government.
