I propose to take Questions Nos. 64 to 67, inclusive, together.
I am informed by Revenue that the number of mortgage accounts in receipt of tax relief at source in respect of mortgage interest in each year from 2010 to 2015, is as set out in the following table.
Year
|
Number of Mortgage Accounts
|
2010
|
349,500
|
2011
|
352,800
|
2012
|
355,400
|
2013
|
351,200
|
2014
|
331,200
|
2015
|
310,400
|
The cost of increasing the rate of tax relief at source that applies in 2016 to 40% and 50% for those that took out a qualifying loan between 2004 and 2008 is tentatively estimated at €41 m and €83 m per annum respectively.
The cost of increasing the interest ceiling of €3,000 in 2016 for tax relief at source, for those that took out a qualifying loan between 2004 and 2008, to €4,000 and €5,000 is tentatively estimated at €18 m and €32 m respectively.
The total cost of tax relief at source for mortgage interest was €232 million in 2015. Any estimates for 2016 and later years must be very tentative because they depend on the extent of mortgage redemption, interest arrears and interest rates among other factors. Assuming that the actual reduction from 2014 to 2015 continues at the same rate, the following table indicates a possible cost. Although mortgage interest relief is due to end in 2017, the table has been extended to 2018 and 2019 to provide estimates for the Deputy's question in this regard.
Year
|
Tentative projection of TRS Cost
|
2015
|
€232m
|
2016 projection
|
€208m
|
2017 projection
|
€186m
|
2018 projection
|
€166m
|
2019 projection
|
€148m
|