Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I move amendment No. 14:

In page 18, line 29, to delete " "qualifying loan" " and substitute " 'qualifying loan' ".

This section of the Bill provides for the temporary one-year, mortgage interest tax relief that I announced on budget day. As indicated on Committee Stage, I am introducing amendments to this section to ensure the relief operates as intended.

First, relief is available in respect of the increased interest paid in 2023 relative to 2022. The maximum amount of relievable interest is €6,250 which equates to a maximum tax credit of €1,250, applying on a per property basis. Pro-rating of the relief applies in circumstances where the interest paid in 2022 or 2023 related to a period of less than 12 months - for example, for mortgages drawn down during 2022 or for mortgages paid off during 2023.

While the Finance (No. 2) Bill 2023 currently provides for pro-rating of the maximum relievable interest, it does not provide for pro-rating of the maximum tax credit of €1,250 where the interest paid is in respect of a period of less than 12 months. On the grounds of equity and fairness, I believe it is appropriate that the maximum tax credit is also pro-rated in a similar manner. These amendments provide for this adjustment and consequential drafting amendments.

Second, this section of the Bill correctly includes certain compliance and anti-avoidance provisions in subsection (7) - for example, to ensure compliance with LPT and planning provision requirements. However, the draft legislation in its current form inadvertently excludes properties transferred between spouses and civil partners from availing of the relief. Therefore, I propose an amendment to delete subsection (7)(c) to ensure that relief can be claimed where the property is transferred between spouses and civil partners.

Finally, a very minor drafting tidy up in the definitions section is required to ensure consistency.

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