Michael McGrath (Cork South Central, Fianna Fail)
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To ask the Minister for Finance in relation to the deadline of 31 December 2012 for first time buyers to avail of mortgage interest relief, if he will explain specifically the stage a borrower has to have reached in order to qualify, for example, mortgage drawn down and mortgage repayment; and if he will make a statement on the matter. [42406/12]

Michael Noonan (Limerick City, Fine Gael)
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The position is that tax relief is available up to and including the tax year 2017 on interest paid on a qualifying home loan taken out on or after 1 January 2004 and on or before 31 December 2012. Such relief is not confined to first time buyers. In addition, tax relief is not available on the interest paid on a loan taken out on or after 1 January 2013. As regards the deadline, the loan must have been drawn down by 31 December 2012.

A qualifying loan for mortgage interest relief is one which without having been used for any other purpose, is or are used in the purchase, repair, development or improvement of a claimant’s principal private residence. Eligibility for the tax relief on the interest paid on such loan is not contingent on the claimant having made a repayment on that loan prior to 31 December 2012.

Caoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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To ask the Minister for Finance if there are tax reliefs available to private nursing homes; if he will identify said reliefs; the cost of such reliefs in 2011 and to date in 2012; and if he will make a statement on the matter. [42416/12]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by the Revenue Commissioners that accelerated capital allowances were available in respect of capital expenditure incurred on the construction or refurbishment of certain health related facilities including private registered nursing homes, residential units associated with registered nursing homes and approved convalescent homes. However, all these schemes have now come to an end and no current expenditure on the provision of any of the above facilities qualifies for the capital allowances relief. In relation to private registered nursing homes, the termination date for incurring qualifying expenditure was 31 December 2009 but where certain conditions were met a later termination date of either 30 June 2010 or 30 June 2011 may have applied. The nursing home must come within the meaning of section 2 of the Health (Nursing Homes) Act, 1990 and must be registered under section 4 of that Act.

A separate scheme of capital allowances was available for residential units constructed on the site of, or on a site immediately adjacent to the site of, a registered nursing home. The units must be operated or managed by a registered nursing home and an on-site caretaker must be provided. Certain other conditions must also be met in relation to the number, design and occupation etc. of the units and in relation to the provision of back-up medical care. The allowances were originally available for qualifying expenditure incurred up to 25 March 2007, and were finally phased out by end April 2010.

In relation to convalescent homes, the termination date for incurring qualifying expenditure was 31 December 2009 but where certain conditions were met a later termination date of either 30 June 2010 or 30 June 2011 may have applied. A convalescent home provides medical and nursing care for individuals recovering from treatment in a hospital. The hospital in question must be one that provides treatment for acutely ill patients. The convalescent home must satisfy the requirements of Section 4 and 6 of the Health (Nursing Homes) Act, 1990 and any regulations made under section 6 of that Act as if it were a nursing home within the meaning of section 2 of that Act.

Qualifying expenditure incurred under all of the above schemes could be written-off at a rate of 15% per annum for 6 years and 10% in year 7. Expenditure incurred on work carried out after the various termination dates does not qualify for any allowances. As mentioned already, all these schemes have come to an end and no current expenditure on the provision of any of the above facilities qualifies for the capital allowances relief. Furthermore, provisions which I introduced in the Finance Act 2012 (section 17) will ensure that with effect from 2015, the Exchequer cost of the legacy of these and other property based schemes will rapidly decline.

I am informed by the Revenue Commissioners that data for the tax years 2011 and 2012 is not yet available as the income tax returns for those years are not due for filing until October 2012 and October 2013 respectively.

Based on the information that has been received and collated to date for the tax year 2010, the latest year available, a total of €43 million was included in 696 claims for capital allowances for the construction of nursing homes. This figure would correspond to a maximum Exchequer cost of the order of €17 million for these returns in terms of income tax and corporation tax forgone. These estimates are calculated before the application of the restriction on the use of certain reliefs by high earners which took effect from 1 January 2007. This restriction on high earners was extended by Section 23 Finance Act 2010.