Dáil Éireann Debate, Tuesday - 17 April 2018
233. Deputy Thomas Byrne asked the Minister for Finance if first time buyers who purchased their home, paid their deposits and signed their contracts in 2008 but their first mortgage repayment was not until early 2009 ever received the increase in the tax relief at source that was introduced in budget 2012 with regard to mortgage interest relief; and if he will make a statement on the matter. [15327/18]
Amharc ar fhreagraI am advised by Revenue that Section 244 Taxes Consolidation Act 1997 provides for tax relief on qualifying interest paid in respect of qualifying home loans. The applicable ceilings and rates of relief will depend on the particular circumstances of the borrower and are set out in Section 244.
For the purposes of Section 244, a “qualifying loan” is a loan which is used by the individual solely for the purpose of defraying money employed in the purchase, repair, development or improvement of a qualifying residence. Broadly, a “qualifying residence” is the sole or main residence of the individual.
Finance Act 2012 introduced a new rate of tax relief of 30% in respect of qualifying loans taken out during the period 1 January 2004 to 31 December 2008, to purchase an individual’s first qualifying residence or second or subsequent qualifying residence, but only where the first qualifying residence was purchased on or after 1 January 2004.
Where a qualifying loan is used to purchase a qualifying residence, the date that a deed of transfer is executed is generally taken to be the date on which the loan commences for the purposes of Section 244. In this regard, where the loan was taken out and the deed of transfer was executed on or before 31 December 2008 and provided the other conditions of Section 244 are satisfied the 30% rate applies. This increased rate is automatically applied to loans that meet the criteria based on the information supplied by the borrower when applying for relief on the Revenue on-line tax relief at source application system.
Comprehensive guidance notes on mortgage interest relief can be found on the Revenue website using the following link - Tax and Duty Manual 08.03.08.
Individuals who consider that they meet the qualifying criteria for the 30% rate of relief but are currently on a lower rate of relief can contact the Revenue helpline on 1890 46 36 26 to get clarification on their entitlement.
