Dáil Éireann Debate, Tuesday - 13 November 2012
188. Deputy Éamon Ó Cuív asked the Minister for Finance the extra cost to the Exchequer in income forgone of granting 30% and 35% mortgage interest relief TRS to all householders who purchased house between 1 January 2000 and 1 January 2012, respectively; and if he will make a statement on the matter. [49424/12]
Amharc ar fhreagraI am informed by the Revenue Commissioners that a basis for compiling the estimates requested by the Deputy could not be compiled without carrying out a significant development of the Revenue Commissioners’ TRS computer system at a cost which would be prohibitive in terms of the resources required. In addition, as the Deputy will be aware, following the Budget 2010 changes, only interest payable on qualifying home loans taken out on or after 1 January 2004 qualifies for tax relief. Interest payable on loans taken out prior to that date no longer qualifies for tax relief.
Notwithstanding the above, if the proposed rate of 35% as mentioned in the question was extended and confined to those first time buyers who took out their first mortgage in the period 2004 to 2008 for whom the rate of tax relief was increased in Budget 2012, the estimated full year cost to the Exchequer would be of the order of €55 million.
