Dáil Éireann díospóireacht -
Tuesday, 12 Dec 2000

Vol. 528 No. 1

Written Answers. - Mortgage Interest Relief Scheme.

Billy Timmins

Ceist:

179 Mr. Timmins asked the Minister for Finance the composition of the current mortgage interest relief scheme; if the rate or ceilings decrease after the first five years of the mortgage; and if he will make a statement on the matter. [29545/00]

Minister for Finance (Mr. McCreevy)

I am advised by the Revenue Commissioners that for the tax year 2000-01 mortgage interest relief, in respect of home loan interest paid, is allowable at the standard rate of income tax. The relief is subject to the following maximum amounts–

2000/2001	SinglePerson	WidowedPerson	MarriedCouple
	£	£	£
First Mortgage(first five years)	2,500	5,000	5,000
Others	2,000	4,000	4,000

I can confirm to the Deputy that after the first five years of a first time mortgage the maximum amount allowable decreases in accordance with the above table.

Billy Timmins

Ceist:

180 Mr. Timmins asked the Minister for Finance the number of mortgage holders who avail of mortgage interest relief; the cost of the scheme; the breakdown of these figures for first time buyers and subsequent buyers; and if he will make a statement on the matter. [29546/00]

Billy Timmins

Ceist:

181 Mr. Timmins asked the Minister for Finance the increase in cost which would result if the ceiling for mortgage interest relief was increased from £2,000 for a single person and £4,000 for a couple to £5,000 and £10,000 respectively for first time buyers based on the figures for 1999; and if he will make a statement on the matter. [29547/00]

Minister for Finance (Mr. McCreevy)

I propose to take Questions Nos. 180 and 181 together.

I am advised by the Revenue Commissioners that the estimated cost to the Exchequer of mortgage interest relief and the number of claimants for the income tax year 2000-01 are shown in the following table:

2000/01	Numbers	Cost
		£m
First Time Buyers	108,600	54.7
Non First Time Buyers	326,600	108.2

The relevant ceilings for first time buyers in 1999-2000 were £2,500 for single persons, £3,600 for widowed persons and £5,000 for married couples in respect of mortgage interest relief. The ceiling for widowed persons was increased to £5,000 for 2000-01. Assuming the enactment of the changes announced in the 2001 budget regarding granting the relief at source, the cost to the Exchequer in a full year, estimated by reference to the expected number of claimants in 2001, of increasing the existing ceilings to £5,000 and £10,000 respectively would be of the order of £11 million. These figures are provisional and subject to revision.