John Browne (Wexford, Fianna Fail)
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71. To ask the Minister for Finance the reason the relevant percentage of mortgage interest relief is not applied to the interest included in a full redemption of an outstanding mortgage on a primary home which was in receipt of it while instalments were being paid; and if he will make a statement on the matter. [2052/15]

Michael Noonan (Limerick City, Fine Gael)
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I am advised by Revenue that mortgage interest relief is available through the Tax Relief at Source (TRS) system as provided for by Section 244 of the Taxes Consolidation Act 1997. 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 circumstances where a mortgage is redeemed, the amount of allowable interest relief is restricted to the maximum of the applicable 'ceiling' for the particular tax year. There is no provision in the legislation to allow the relief on interest paid that is in excess of the 'ceiling' threshold even where the amount is part of a redemption agreement.