Dáil Éireann Debate, Tuesday - 17 October 2023
168. Deputy Ged Nash asked the Minister for Finance if tracker and variable rate mortgage holders who benefit from the rent-a-room scheme in respect of their principal private residence will be able to access the proposed new mortgage interest relief scheme announced in Budget 2024, provided they meet the criteria as outlined by him; and if he will make a statement on the matter. [45257/23]
Amharc ar fhreagraMortgage interest tax relief will be available to taxpayers in respect of their principal private residence in the State where the outstanding mortgage balance was between €80,000 and €500,000 on 31 December 2022 and the taxpayer is compliant with Local Property Tax requirements.
The relief will be available at the standard rate of income tax in respect of the increase in the interest paid between the calendar year 2022 compared to the calendar year 2023. The value of the relief will be equal to the lesser of 20 per cent of the increased interest paid or €1,250, applying on a per property basis. Thus, maximum relief of €1,250 per property.
To claim the mortgage interest tax relief, the taxpayer must file a tax return with Revenue. The relief will operate by way of a credit offset against the taxpayer’s income tax liability in 2023. It is anticipated that the relief may be claimed in early 2024.
In relation to the Deputy’s specific question, the intention is that it will be possible to claim both rent-a-room relief and mortgage interest tax relief provided all of the qualifying conditions for both schemes are satisfied.
