Billy Timmins (Wicklow, Fine Gael)
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Question 104: To ask the Minister for Finance the position regarding the seven year extension to the tax relief on mortgages; if a person who drew down their mortgage in November 2003 but only received two months relief in respect of 2003 can be included in this as their first year was up in November 2004; and if he will make a statement on the matter. [8221/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that tax relief is available for mortgage interest paid on a qualifying home loan, i.e. a loan used for the purchase, repair, development or improvement of an individual's principal private residence and is operated through the tax relief at source (TRS) system. In my Supplementary Budget 2009, I announced that mortgage interest relief for first-time and non-first time buyers was being limited to the first seven tax years for which an individual has entitlement to relief.

In Budget 2010, I announced that I would be extending mortgage interest relief up to the end of 2017 for those whose entitlement to relief was due to end in 2010 or after.

In addition, qualifying loans taken out on or before 31 December 2011 will continue to get relief at current levels. Qualifying loans taken out in 2012 will received the relief at a reduce rate. The reduced rate will be 15% for first-time buyers and 10% for non-first time buyers with ceilings of €6,000 per annum for married couples and €3,000 per annum for single individuals applying in both cases. Loans taken out on or after 1 January 2013 will not qualify for mortgage interest relief and the relief will be abolished completely for the tax year 2018 and subsequent tax years.

In the case outlined by the Deputy, the individual was entitled to a full year's relief at the appropriate rate for interest repayments up to the annual ceiling, in November and December 2003, and a full year's relief in respect of interest repayments made up to the annual ceiling, in each of the six succeeding tax years.