Dáil Éireann Debate, Tuesday - 1 July 2014
130. Deputy Timmy Dooley asked the Minister for Finance the reason a couple were refused mortgage interest relief for portions of a loan drawn down in the qualifying period; and if he will make a statement on the matter. [28100/14]
View answerI am advised by Revenue that Section 244 of the Taxes Consolidation Act 1997 provides that in order to qualify for mortgage interest relief (MIR), a loan must have been drawn down and used in the purchase, repair or development of an individual's principal private residence on or before 31 December 2012. On this basis any funds drawn down on a date later than 31 December 2012 do not qualify for the relief.
However, Section 9 of the 2013 Finance Act provides for extended entitlement beyond the 31 December deadline in circumstances where all of the required qualifying conditions are met. The qualifying conditions are:
- The loan must have been taken out between 1 January 2012 and 31 December 2012,
- A portion of the loan must have been used to purchase a site in 2012,
- The balance of the loan must be drawn down and used to construct a dwelling on that site in 2012 and 2013.
- Any necessary planning permission must have been in place prior to 31 December 2012.
In regard to the case to which the Deputy refers, Revenue has confirmed to me that the site in question was not purchased by the claimants during 2012, thereby 'disqualifying' the funds drawn down after 31 December 2012 from entitlement to MIR. Revenue has confirmed to me that while the person in question is not entitled to MIR in respect of the portion of the loan drawn down after 31 December 2012, he is in receipt of the relief in respect of the portion of the loan drawn down in December 2012. This entitlement will continue up to 2017 as currently provided for under the legislation.
