Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I move amendment No. 5:

In page 8, line 22, to delete “section 598A.”.” and substitute the following:“section 598A.
(11) Subsection (9) shall not apply to a loan made after 15 October 2013 which is applied in paying off another loan to an individual used to defray money applied under paragraph (a), (b) or (c) of subsection (1), provided--

(a) the loan does not exceed the balance outstanding on the loan being paid off, and
(b) the term of the loan does not exceed the balance of the term of the loan being paid off.”.”.

Section 3 of the Finance (No. 2) Bill 2013 amends section 253 of the Taxes Consolidation Act 1997 which provides tax relief for individuals for interest on money borrowed to enable them to acquire shares in a partnership, or to contribute or advance money to a partnership. The relief has been abolished for new loans from 15 October 2013 and is being phased out over a three year period for existing loans, with a cessation date of 1 January 2017.

The relief is being abolished for new loans from 15 October 2013 and phased out over a three-year period for existing loans with a cessation date of 1 January 2017. This Committee Stage amendment will allow a relief for new loans where the loan replaces an existing qualifying loan of the same value and term. This will allow borrowers to refinance at a lower cost with a resulting saving for the Exchequer. I commend this amendment to the committee.