Jan O'Sullivan (Limerick East, Labour)
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Question 519: To ask the Minister for Finance if he will explain the implementation of the changes to mortgage interest relief announced in the last budget; the reason they were implemented earlier than the month indicated in the budget announcement; the reason they were not staged so as not to have such a severe effect on those who missed the cut-off date; if he will consider modifying the changes; and if he will make a statement on the matter. [33888/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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Mortgage Interest Relief for first time and non first time buyers is limited to the first seven tax years for which an individual has entitlement to the relief. In Budget 2010, I announced that I would be extending the relief up to the end of 2017 for those whose entitlement to relief was due to end in 2010 or after. Those who took out mortgages in 2003 would have seen their entitlement end after 2009 and accordingly, this measure, which was applied on time and as announced, does not apply to these individuals. While circumstances and house prices differ, it is necessary to select a cut-off point in these matters.

The Finance Act 2010 also provides that 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 receive the relief at a reduced rate of 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.

As regards Budget 2011, it is a longstanding practice of the Minister for Finance not to comment in advance of the Budget on any tax or expenditure matters that might be the subject of Budget decisions.