Arthur Morgan (Louth, Sinn Fein)
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Question 114: To ask the Minister for Finance the revenue that would be raised from increasing the rate of capital acquisitions tax from 25% to 30%. [35667/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am advised by the Revenue Commissioners that the estimated full year yield to the Exchequer from increasing the capital acquisitions tax rate from 25% to 30% could be in the region of €50 million. However, it should be noted that this estimate is based upon an assumption that there would be no behavioural impact of such an increase, which could lead to a less than expected result from a change to the tax rate. In addition, the realisation of any estimated yield from an increase in taxation on assets relating to property is subject to movements in the value of such assets, which are currently occurring in the economy.

Arthur Morgan (Louth, Sinn Fein)
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Question 115: To ask the Minister for Finance the revenue that would be raised if the State introduced a 40% levy on legacy tax reliefs in 2010. [35668/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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It is assumed that the Deputy is referring to property based tax incentive schemes that remain in the tax code: *Convalescent Homes *Qualifying (Private) Hospitals *Qualifying Mental Health Centres Qualifying Specialist Palliative Care Units (subject to Commencement Order) Buildings used for Child care Purposes *Registered Nursing Homes *Qualifying (Nursing Home) Residential Units, and Certain tourism infrastructure under the mid-Shannon scheme (only 80% of expenditure can qualify in certain areas).

I am informed by the Revenue Commissioners that, based on information regarding the cost of these schemes that has been received and collated for the tax year 2007, the Deputy will be aware from my reply to Question No. 372 [34442/09] on 6 October that the annual yield to the Exchequer from the abolition of these reliefs could be in the region of €43 million. If a "levy" or other restriction of 40% was introduced then this would yield in the region of €17 million to the Exchequer. The matter of introducing such a measure would be legally complex and would require careful consideration.

Apart from the schemes listed above all other property based tax incentive schemes have been terminated on, or before, 31 July 2008. Finally, it should be noted that the "horizontal" or restriction of reliefs measure introduced in 2006 with effect from 1 January 2007 applies in relation to those on high incomes using property based reliefs.

*Abolished in Supplementary Budget and Finance Bill 2009.

Richard Bruton (Dublin North Central, Fine Gael)
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Question 116: To ask the Minister for Finance the implementation of the changes made to tax relief at source for mortgage interest relief which was introduced in the supplementary budget 2009; if there was a backlog; and if he will make a statement on the matter. [35691/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I announced in my Budget Statement of 7 April that with effect from 1 May 2009, the number of tax years in respect of which mortgage interest relief may be claimed is seven years for first-time and non-first time buyers. Revenue subsequently worked with the lending institutions and mortgage account holders on the implementation of the measure. The objective was to make the implementation as straightforward as possible and to ensure, in so far as possible, that mortgage account holders who were entitled to mortgage interest relief under the new rules got the relief with the minimum of delay and without the need, where possible, for any action on their part.

I am advised by Revenue that some 242,000 mortgage accounts were held by first-time buyers and payment of relief continued, without interruption, in respect of those accounts. In respect of 322,000 non-first time buyers, Revenue had enough information on some 57,000 accounts to be able to confirm the accounts were not eligible for interest relief from 1 May 2009. In respect of the balance of 265,000 accounts, Revenue sourced the necessary information from the mortgage providers to determine eligibility for relief in respect of approximately 150,000 accounts. In appropriate cases payment of relief was reactivated without the need for any action by the account holder. Any arrears of relief were or are being automatically credited to such accounts by the lender, again without the need for any action by the account holder.

For the balance of approximately 115,000 cases where Revenue could not confirm eligibility to relief it invited the account holders, if they were entitled to relief under the seven year rule, to provide the necessary information to Revenue. Some 51,000 of these account holders who believed they had an entitlement to relief, provided the information requested. Where an entitlement to relief was confirmed by Revenue, the payment of relief was reactivated by Revenue without the need for any further action by the account holder. Any arrears of relief were or are being automatically credited to such accounts by the lender, again without the need for any action by the account holder.

Subsequently, in a relatively small number of cases where mortgage accounts were consolidated or the mortgage holder secured a top up to their mortgage, Revenue sought specific information from the mortgage holder to determine the exact amount and percentage, if any, that qualifies for the relief. Revenue is processing some 2,500 completed responses to this information request. This processing task will be completed within a matter of weeks - payment of relief will in appropriate cases be reactivated and any arrears of relief credited to the accounts. Some additional changes to Revenue's processing systems are also nearing completion to cater for the reactivation of relief in respect of new qualifying loans taken out by non-first time buyers after 1 May.

I am satisfied with the approach taken by Revenue, focused as it was on minimising the effort needed by individual mortgage account holders in establishing their entitlement to mortgage interest relief under the new rules was the correct one. This has ensured that the appropriate relief has been made available to those who have an entitlement to such relief in the fastest and most efficient manner possible. It has also ensured that tax relief is correctly paid to those entitled to relief in the targeted way announced by me on 7 April 2009.