Dáil Éireann Debate, Tuesday - 1 July 2014
144. Deputy Robert Troy asked the Minister for Finance whether any assistance or tax incentives are available to first-time buyers who purchased their homes in February 2014 (details supplied); and if he will make a statement on the matter. [28319/14]
Amharc ar fhreagraThe position is that tax relief on interest paid on all qualifying home loans is being phased out. In Finance Act 2010, mortgage interest relief was extended up to end of 2017 for those whose entitlement to relief was due to end in 2010 or after. Therefore, tax relief will continue to be available in respect of interest paid by an individual on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, regardless of whether they are considered first-time buyers or non-first-time buyers.
Single individuals that are first-time buyers qualify for Mortgage Interest Relief up to a maximum ceiling of €10,000 for the first seven years of their mortgage. Thereafter relief is restricted to a ceiling of €3,000.
This Government is committed to helping address the particular problems faced by those that bought homes at the height of the property boom between 2004 and 2008. In this regard, in Budget 2012, I fulfilled the commitment in the Programme for Government to increase the rate of mortgage interest relief to 30 per cent for first time buyers who took out their first mortgage in that period. This was the period during which house prices peaked.
A mortgage holder will qualify for the increased rate if they made their first mortgage interest payment in the period 2004 to 2008 or if they drew down their mortgage in that period. In addition, the increased rate of tax relief for first time buyers who took out their first mortgage in that period will continue up to and including the 2017 tax year.
The arrangements and qualifying conditions for mortgage interest relief are publicised widely whenever changes to the system are made in the Budget and are published on the Revenue website.
In addition to the above, the legislation governing the administration of Local Property Tax (LPT) provides for a number of exemptions from LPT for those who purchased a residential property from 1 January 2013.
Section 8 of the Finance (Local Property Tax) Act 2012 (as amended) provides an exemption from LPT to a property purchased between 1 January 2013 and 31 December 2013 if it is occupied as a sole or main residence by the purchaser.
Under section 9 of the Finance (Local Property Tax) Act 2012 (as amended) any new and previously unused residential property that is purchased from a builder or property developer between 1 January 2013 and 31 October 2016 will be exempt from LPT up to the end of 2016.
Furthermore, any residential property that was not a liable property for LPT purposes on the 1 May 2013, for example, where the construction was not completed, will not be liable for LPT until 2017. Where such a property is purchased after 1 May 2013, it will not be liable for LPT until 2017.
However, if a person purchased a property that was liable to LPT on 1 May 2013 between 1 January and 1 November 2014 then they will be liable to LPT for 2015 and 2016.
