Dáil Éireann Debate, Thursday - 11 July 2013
79. Deputy Dan Neville asked the Minister for Finance if persons who are council tenants, have inherited a house which is not habitable as a family unit and they need to obtain a mortgage and planning permission to extend the house have an entitlement to mortgage allowance as vacating tenants moving to private ownership; will they have to either buy or build in the new house to become eligible for mortgage allowance. [34133/13]
View answerI assume the Deputy is referring to mortgage interest relief. On that basis, the position is that mortgage interest relief is not available in respect of interest paid on loans taken out on or after 1 January 2013, except in two specific circumstances which are set out below:
1. Interest paid on a loan taken out in 2013 to construct a home on a site, but only where such site was bought by way of a loan, which itself qualifies for mortgage interest relief, and which was taken out in 2012.
2. Interest paid on a loan to repair, develop or improve a home but only where loan approval was in place in 2012 and part of such loan was drawn down and used in 2012 and the remainder will be used in 2013.
Also, before relief for mortgage interest will be granted, any necessary planning permission must have been in place on or before 31 December 2012. Based on the information provided by the Deputy, it would appear that neither of the circumstances outlined above would apply in this particular scenario.
