Dáil Éireann Debate, Wednesday - 22 April 2009
234 Deputy Róisín Shortall asked the Minister for Finance if he will confirm that if a person who is eight years into their first time buyer mortgage trades up to another home they can avail of tax relief on their mortgage interest for a further seven years on their new mortgage loan. [15953/09]
Amharc ar fhreagraThe position is that mortgage interest tax relief, through the tax relief at source system, would be granted at the appropriate rate of relief for a period of 7 years where, in the circumstances outlined, a new loan is taken out on a newly purchased home. In the circumstances described, the person would now be classified as a non first time buyer and therefore would qualify for relief at a rate of 15% on the first €3,000 of interest paid per individual or €6,000 in the case of a married couple.
235 Deputy Róisín Shortall asked the Minister for Finance if he will clarify his recent statement that he intends abolishing mortgage interest relief; the date from which this will take effect; and if existing recipients of the relief will be affected by this change. [15954/09]
Amharc ar fhreagraI assume the Deputy is referring to my budget speech on 7th April where I outlined the Government's decision in relation to Mortgage Interest Relief for principal private residences. While this relief has not been abolished, with effect from 1st May 2009, its availability will be restricted to the first seven years of any qualifying loan. I also stated that, as house prices fall, the provision of Mortgage Interest Relief will be kept under review with a view to eventual abolition. The Commission on Taxation are reviewing this, along with the rest of the taxation system, and I expect to receive their recommendations later this year.
Should any future decision be taken to abolish Mortgage Interest Relief, those taxpayers that already have qualifying loans will continue to have access to the relief until the 7 year limit is reached.
