John Cregan
Ceist:208 Deputy John Cregan asked the Minister for Finance the way mortgage relief at source is applied; and the number of years a householder can claim this relief on their mortgage. [4091/10]
Amharc ar fhreagraWednesday, 27 January 2010
Ceisteanna (121)
Freagraí scríofa
The position is that tax relief in respect of mortgage interest paid on a qualifying home loan, i.e. a loan used for the purchase, repair, development or improvement of an individual's principal private residence, is paid through the tax relief at source (TRS) system. The mortgage provider or lender gives the relief, which applies to first-time buyers and non-first time buyers, at source. The mortgage lender is reimbursed with an amount equivalent to the relief by the Revenue Commissioners who are responsible for the overall administration of the TRS system.
In my Supplementary Budget 2009, I announced that mortgage interest for first-time buyers and non-first time buyers was being limited to the first seven tax years for which an individual has entitlement to relief. In Budget 2010, I announced that I would be extending mortgage interest relief up to the end of 2017 for those whose entitlement to relief would end in 2010 or after. This means those who took out qualifying loans from 2004. Mortgage interest relief will be abolished completely by the end of 2017. Full details will be provided in the forthcoming Finance Bill.