Written answers

Wednesday, 14 December 2011

10:00 pm

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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Question 74: To ask the Minister for Finance the amount of tax relief at source provided for each year since 2002; the expected cost of the scheme in 2012; the amount that would be saved if the average interest rate on qualifying mortgages was 0.5% less than projected; and if he will make a statement on the matter. [40228/11]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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I am informed by the Revenue Commissioners that the cost to the Exchequer of mortgage interest relief by way of tax relief at source (TRS) in each of the years 2002 to 2011 inclusive is as follows:

Tax YearCost €m
2002193
2003221
2004232
2005279
2006352
2007543
2008705
2009486
2010375
2011 (11 months)335 *

· This figure is provisional and subject to revision.

A forecast of the expected cost of mortgage interest relief for the year 2012 is €420 million.

The reduced cost of tax relief that would arise if average interest on qualifying mortgages was 0.5% less than projected would depend on a variety of factors, including the numbers of mortgages affected, the rate of relief applying to those mortgages and the extent to which the lower relief would fall below the current ceilings. Accordingly, it is not possible to provide an accurate estimate of the potential saving.

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