The new rules for mortgage interest relief will continue to provide significant support for first-time buyers and others who will now take out a new loan to purchase a new home, move home or take out a loan for the repair, development or improvement of their current home. These mortgage holders will no longer be entitled to mortgage interest relief as a result of this measure and will be granted relief on a pro rata basis for the first four months of 2009 as follows: for a single person, interest paid in the first four months of this tax year will qualify for relief at 15%, but if the interest paid in that period exceeds €1,000, then the relief is confined to €1,000 at 15%; and for a married couple, interest paid in the first four months of this tax year qualifies for relief at 15%, but if the interest paid in that period exceeds €2,000, then the relief is confined to €2,000 at 15%. In addition, where such an individual carries out a new qualifying loan between 1 May this year and 31 December this year, only a proportionate amount of the annual relief limit will be available in 2009.

See this item in context