Michael McGrath (Cork South Central, Fianna Fail)
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158. To ask the Minister for Finance the reason the mortgage interest relief TRS has been reduced in respect of a person (details supplied) in Dublin 15; and if he will make a statement on the matter. [1481/15]

Michael Noonan (Limerick City, Fine Gael)
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Mortgage interest relief is available through the Tax Relief at Source (TRS) system. The relief is available at varying rates and ceilings in respect of interest paid on a loan used for the purchase, repair, development or improvement of a sole or main residence.

The relief is available on qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, up to and including the tax year 2017.

Persons purchasing their first qualifying residence are eligible for the higher ceiling (known as the 'first time buyer ceiling') in the first seven tax years of entitlement, when the maximum amounts of interest paid for which tax relief can be claimed are €20,000 for married/widowed persons and €10,000 for single persons. For tax years eight and onwards (up to 2017), the ceilings are €6,000 for married/widowed persons and €3,000 for single persons (known as the 'non-first time buyer' ceiling).

In the case to which the Deputy refers, the house in question was bought in 2008 and the 'first time buyer' ceiling applied from the 2008 tax year to the 2014 tax year inclusive.  For tax year 2015 and onwards the 'non-first time buyer ceiling' applies and for this reason the allowable relief has reduced with effect from January 2015.