Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I propose to take Questions Nos. 45 and 81 together.

Section 244 of the Taxes Consolidation Act 1997 provides MIR in respect of qualifying interest paid in a tax year. The level of relief allowable in any tax year in respect of the amount of interest paid, inclusive of any arrears paid, cannot exceed the applicable rates and ceilings for that year. The applicable rate and ceiling for each qualifying person are determined by his or her personal circumstances, for example, whether he or she is a first-time buyer, single, married or in a civil partnership.

The mortgage interest ceilings that apply to first-time buyers - those within the first seven tax years of taking out their first mortgages - are €10,000 for a single individual and €20,000 for a married couple or civil partnership. For subsequent years, the ceilings reduce to €3,000 and €6,000, respectively.

Regarding the scenarios set out in the Deputy's questions, Revenue has confirmed that the persons in question are entitled to claim MIR as soon as they restart making mortgage payments. The relief entitlement may be increased to take account of the additional arrears payments being made, but the cumulative amount of relief granted cannot exceed the maximum level of the applicable rates and ceilings for the particular year in which the interest is paid. "Yes" is the answer, and if they are making arrears payments, they can add the relevant interest as long as they remain below the ceiling. Revenue has advised that the persons in question should contact its tax relief at source helpline at 1890 46 36 26 so the exact entitlement can be quantified, having due regard to the specific details of the cases.

The Deputy will be aware that there is a programme for Government commitment to retain MIR beyond the current end date on a tapered basis. Since legislation already provides for the relief to continue to the end of December 2017, it was not necessary to legislate for the extension in the Finance Bill 2016. In my Budget Statement in October, however, I confirmed my intention to extend MIR on a tapered basis to 2020, with the details of the extension to be set out in budget 2018. Deputy Michael McGrath is a strong advocate of this extension and we are fulfilling that commitment.

I am also pleased to note that, as mentioned in response to Deputy Burton's Priority Question, mortgage arrears and repossession data released by the Central Bank to the end of the third quarter of 2016 provide evidence that consistent progress is being made in addressing mortgage arrears, with the number of private dwelling home mortgage accounts in arrears continuing to fall for the 13th consecutive quarter.

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