Dáil Éireann Debate, Tuesday - 25 March 2014
223. Deputy John Browne asked the Minister for Finance if non-first-time buyers in the 2004 to 2008 period can expect to have assistance similar to the increased interest relief for first-time buyers; if the concentration of relief on first-time buyers is discriminatory against non-first-time buyers who traded down or up in the period; and if he will make a statement on the matter. [13352/14]
View answerThe position is that in Finance Act 2010, mortgage interest relief was extended up to end of 2017 for those whose entitlement to relief was due to end in 2010 or after. Therefore, tax relief will continue to be available in respect of interest paid by an individual on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, regardless of whether they are considered first-time buyers or non-first-time buyers
In Budget 2012, I fulfilled the commitment in the Programme for Government to increase the rate of mortgage interest relief to 30 per cent for first-time buyers who took out their first mortgage in that period. This was the period during which house prices peaked.
A mortgage holder qualifies for the increased rate if they made their first mortgage interest payment in the period 2004 to 2008 or if they drew down their mortgage in that period. In addition, the increased rate of tax relief for first-time buyers who took out their first mortgage in that period will continue up to and including the 2017 tax year.
A lower rate of relief is provided for non-first time buyers in view of the fact that such individuals would have already received the first-time buyers rate of relief for the first seven years on their qualifying home loans and that the proportion of interest on their subsequent repayments would be significantly lower. Those individuals trading up or down in the period 2004 to 2008, would also be likely to have an element of capital to utilise towards the purchase of their second or subsequent dwelling, which should have led to a reduced borrowing requirement on the relevant property.
Given that mortgage interest relief has now been abolished for mortgages taken out since 1 January 2013, I do not propose to revisit the legislation with a view to introducing further changes.
