Dáil Éireann Debate, Thursday - 19 December 2013
118. Deputy Michael McGrath asked the Minister for Finance the total tax expenditure in respect of residential mortgage interest relief in each year from 2010 to date in 2013; the way the projected cost in 2012 was impacted by changes in mortgage interest rates; and if he will make a statement on the matter. [55098/13]
View answerI am informed by the Revenue Commissioners that the cost to the Exchequer of mortgage interest relief for principal private residences by way of tax relief at source (TRS) in the years 2010 to 2013 inclusive is as follows:
|
Tax Year |
Cost €m |
|
2010 |
€375 |
|
2011 |
€357 |
|
2012 |
€411 |
|
*2013 (11 months) |
€324 |
*This figure is provisional and subject to revision.
The expected cost to the Exchequer of tax relief allowed for mortgage interest in the 12 months of 2013 is provisionally estimated at €400 million. Costs are rounded to the nearest million.
The impact of interest rate changes on the cost of mortgage interest tax relief for principle private residences would depend on a variety of factors, including the numbers of mortgages affected, the monetary amount of the qualifying loans taken out; the rate of relief applying to those qualifying loans, the year the qualifying loans were taken out and the extent to which the ceilings for relief are impacted by changes in interest rates. Accordingly, it is not possible to provide an accurate estimate of how the cost of the tax relief in 2012 was affected by changes in mortgage interest rates.
