Michael Creed (Cork North West, Fine Gael)
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Question 120: To ask the Minister for Finance the reason mortgage relief, as currently available, is not guaranteed for the full seven-year period; the further reason, in certain circumstances, that persons can be denied a payment for up to 11 months of the first year of their application; if he will investigate the case of a person (details supplied) in County Cork and ensure that the payment is guaranteed for a period of 84 months; and if he will make a statement on the matter. [18914/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The position is that an individual's entitlement to mortgage interest relief is calculated by reference to a year of assessment, which is defined in the Taxes Consolidation Act 1997 as a calendar year i.e. from 1 January to 31 December. It should be noted that where an individual takes out a qualifying home loan during the year, the interest accruing on the day from which the qualifying home loan is taken out to 31 December of that year qualifies for one full year's tax relief. The individual is entitled to avail of the full annual ceiling at the appropriate rate. However, in some circumstances individuals may not benefit from the full relief as their interest repayments may not reach the annual ceiling; this situation can arise in any of the years in which there is an entitlement to relief.

I am advised by Revenue that in the case in question the first year of assessment for which the mortgage qualified for relief was 2004. Relief applies for the first seven tax years, 2004 to 2010 (inclusive), at the first-time buyer rate. Those whose entitlement to relief would otherwise expire in 2010 or after, will continue to qualify for relief at the appropriate rate until end 2017, as provided for in the Finance Act 2010. In the case in question, therefore, relief will apply from 2011 until 2017 at the non-first time buyer rate.