Deputies will recall that in the budget for 2010 the Minister abolished mortgage interest relief for new mortgages taken out after 1 January 2013. Those entitled to that relief at present will retain it until 31 December 2017. It has now been decided to abolish rent relief on a phased basis over the same period. In order to maximise the Exchequer yields from this measure, new claimants will not be able to claim the relief with effect from today. Withdrawal of the relief over this period will be achieved by reducing the amount of rent that can be relieved by 20% in the years 2011 and 2012, with further annual reductions of 10% thereafter until 2018. Based on 2008 provisional figures, the annual yield to the Exchequer for such a phased withdrawal will be €19.4 million in 2011, €38.8 million in 2012 and the yield thereafter will increase annually until 2018 when the relief will be completely withdrawn.

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