Dáil Éireann Debate, Thursday - 13 July 2017
123. Deputy Michael McGrath asked the Minister for Finance the number of mortgage holders in receipt of tax relief at source in 2017; the cost of such relief; and if he will make a statement on the matter. [33756/17]
View answerI am advised by Revenue that the number of mortgage holders in receipt of tax relief at source in respect of mortgage interest for the year 2016, the latest year for which data are available, is in the order of 419,400 claimants. The provisional cost to the Exchequer in 2016 for claimants is just over €184 million. A forecast for 2017 is not available.
At present, Section 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, with relief being available until 31 December 2017. Mortgage interest relief (MIR) has been abolished for homes purchased since 1 January 2013.
In Budget 2017 the Government’s intention to extend MIR beyond the current 2017 end date on a tapered basis to 2020, in line with the commitment in the Programme for Government, was re-stated. The details of the extension will be set out in Budget 2018. A review of policy considerations and potential costs of such an extension was contained in the Income Tax Reform Plan published by my Department in July last year and may be of interest to the Deputy. The plan is available at:
http://www.finance.gov.ie/sites/default/files/Income%20Tax%20Reform%20Plan-FINAL_0.pdf .
