Written answers

Tuesday, 30 June 2009

11:00 pm

Photo of Noel CoonanNoel Coonan (Tipperary North, Fine Gael)
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Question 143: To ask the Minister for Finance the number of mortgage holders in the North Tipperary constituency who lost entitlement to mortgage interest relief following his decision to abolish mortgage interest relief for those with a mortgage for more than seven years; and if he will make a statement on the matter. [26140/09]

Photo of Noel CoonanNoel Coonan (Tipperary North, Fine Gael)
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Question 144: To ask the Minister for Finance the number of mortgage holders in the North Tipperary constituency currently in receipt of mortgage interest relief; and if he will make a statement on the matter. [26141/09]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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I propose to take Questions Nos. 143 and 144 together.

I am informed by the Revenue Commissioners that it is not possible to provide a breakdown of entitlement to, or loss of entitlement to, mortgage interest relief on the geographic basis sought by the Deputy.

At the end of 2008, there were approximately 564,000 mortgage accounts in respect of which mortgage interest relief was being paid through the main lenders. Using the information already available through its own systems and by working with the lenders, Revenue was able to establish the entitlement status of 430,000 mortgage accounts (76% of the total of 564,000 mortgage accounts) under the new seven-year rule for the payment of tax relief as announced in the supplementary budget. Of those:

276,000 were determined as eligible for tax relief post 1 May. Of that 276,000, 242,000 have been getting the relief since 1 May, the remaining 34,000 have been getting the relief since 1 June and the mortgage relief for the month of May is also being paid automatically through the tax relief at source (TRS) system.

154,000 were determined as ineligible for tax relief post 1 May.

In the case of the remaining approximately 134,000 mortgage accounts (24% of the total), definitive entitlement or non-entitlement to mortgage interest relief could not be established by Revenue without making direct contact with the mortgage account holder. Revenue has now written to the vast majority of these mortgage account holders advising them of the new seven year rule. Where these account holders feel they have an entitlement to mortgage interest relief, they are asked to provide certain information about the account to Revenue. The remaining more complex cases, involving top up loans, are in the course of being written to by Revenue.

From the responses received, Revenue has acquired additional information needed to confirm continued eligibility for a further 26,000 accounts. Revenue will now recommence payment of mortgage interest relief from 1 July for these 26,000 accounts. Any arrears of tax relief due back to 1 May will also be paid automatically through the TRS system.

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