Pearse Doherty
Question:215. Deputy Pearse Doherty asked the Minister for Finance the number of successful claims to date under the mortgage interest tax credit relief. [22488/24]
View answerTuesday, 21 May 2024
Questions (215, 216)
Pearse Doherty
Question:216. Deputy Pearse Doherty asked the Minister for Finance the value of money disbursed to date under the mortgage interest tax credit. [22489/24]
View answerWritten answers
I propose to take Questions Nos. 215 and 216 together.
Mortgage Interest Tax Relief, which is a one-year temporary relief, is available to home owners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022. It is available at the standard rate of income tax and is based on the increase in the interest paid in 2023 over interest paid in 2022. The value of the relief is equal to the lesser of 20 per cent of this excess interest amount or a maximum of €1,250. Where the interest payments in respect of either the 2022 or 2023 tax years are not for a full year, pro-rating will apply, to ensure interest is applied on a period of equivalence basis and that the cap is adjusted accordingly. In order to avail of the relief, the taxpayer must file a 2023 Income Tax Return and upload their certificate of mortgage interest for 2022 and 2023, and confirmation of their mortgage balance at 31 December 2022. Furthermore, the taxpayer must be compliant with Local Property Tax requirements and must have paid income tax in 2023. The relief operates by way of a credit offset against a taxpayer’s income tax liability for 2023.
I am advised by Revenue that, as of 15 May 2024, 21,181 taxpayer units made a claim for the Mortgage Interest Tax Credit on their 2023 PAYE income tax return and 18,803 claimants received a refund of tax, totalling over €17.8 million. Of these, 243 claimants paid tax which was less than the full credit which they claimed. Revenue notes that other credits and reliefs claimed, such as health expenses and tuition fees, may also have contributed to the overall amount of refunds issued. A further 2,119 claimants are either in a balanced position or had an underpayment reduced by the Mortgage Interest Tax Relief being applied to their record.
An additional 259 claimants are not in a position to benefit as they did not pay any Income Tax in 2023.
Information is not yet available for self-assessed taxpayers as these taxpayers have until 31 October 2024 to submit their 2023 Income Tax Return.
Data is not available in respect of the number of people who may be entitled to claim the tax credit but who have not yet filed a return and made a claim. It should be noted that taxpayers have four years to submit claims for tax credits and tax reliefs.
Question No. 216 answered with Question No. 215.