Richard Bruton (Dublin North Central, Fine Gael)
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Question 132: To ask the Minister for Finance if he has imposed restrictions on the right to obtain interest relief on borrowings on properties purchased overseas for renting or for occupation. [12574/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am advised by the Revenue Commissioners that, in the same way as interest relief is granted for Irish rental property, interest relief is granted on money borrowed that is used for the purchase, improvement or repair of rental property outside the State. However, no interest relief is available for individuals on money borrowed to purchase property outside the State as a residence or holiday home, with one exception. The exception arises where an individual purchases a qualifying residential premises that is situated in Northern Ireland or Great Britain; and such premises is used by that individual, or by his or her separated spouse, as that person's sole or main residence, For a non-first time buyer who qualifies for this exception, tax relief is due, at the standard rate, that is at 20%, on interest paid subject to the following limits: for a married couple on joint assessment, a maximum relief of €5,080 at 20%; for a widowed person, a maximum relief of €5,080 at 20%; and for any other individual, a maximum relief of €2,540 at 20%.

The exception covers mainly the situation of a Northern Ireland resident individual who is employed and works full-time in the State, for example, a cross-Border worker.