Catherine Murphy (Kildare North, Social Democrats)
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30. To ask the Minister for Finance the changes in eligibility for tax relief on mortgage interest in respect of first-time buyer home loans in 2009 and 2010; if first-time buyers who obtained their mortgages in those specific years are entitled to the same or to a higher benefit under the scheme; the reason for this measure; the amounts offered in mortgage interest relief for first-time buyers in each year from 2002 to 2015; and if he will make a statement on the matter. [4569/16]

Michael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that mortgage interest relief has been abolished for homes purchased since 1 January 2013. Up until 2018 however, tax relief continues to be available for interest paid on all qualifying home loans taken out on or after 1 January 2004 and on or before 31 December 2012, regardless of whether the individuals concerned are first-time buyers or non-first-time buyers.

Mortgage interest relief was restricted in Finance Act 2009 so that, with effect from 1 May 2009, the interest payable on a qualifying home loan qualified for tax relief only for the first 7 tax years of the life of that loan.  This applied to the interest payable on existing and new qualifying home loans by both first-time buyers and by non first-time buyers.

There was no change in the rate at which tax relief was available to first-time buyers, which was as follows:

- 25 per cent of relievable interest for years 1 and 2;

- 22.5 per cent of relievable interest for years 3, 4 and 5; and -

- 20 per cent of relievable interest for years 6 and 7.

For non first-time buyers, the rate of relief was 15% of relievable interest.Relievable interest is the amount of interest paid, subject to a ceiling on the maximum amount that can be relieved, as follows:

- In the case of a first-time buyer in the first seven years of entitlement - €10,000 (€20,000 for a married individual/civil partner/widowed individual) and

- In other cases €3,000 (€6,000 for a married individual/civil partner/widowed individual).

Where mortgage interest relief would otherwise have ceased in 2010 or later, Finance Act 2010 extended the tax relief to 2017 at prevailing rates and ceilings.  That Act also extended the tax relief to 2017 on interest paid on new qualifying home loans taken out on or before 31 December 2012. There was no subsequent change to the rates or ceilings in respect of first time buyers who took out a loan in 2009 or 2010.

Finance Act 2012 subsequently introduced a new rate of relief of 30% of relievable interest, again subject to the ceilings above, as respects qualifying interest paid on a qualifying loan taken out on or after 1 January 2004 and on or before 31 December 2008.  This applied to the purchase of an individual's first qualifying residence or second or subsequent qualifying residence but only where the first qualifying residence was purchased on or after 1 January 2004.  The rationale behind this change was to help address the particular problems faced by those who bought homes at the height of the property boom between 2004 and 2008, fulfilling the commitment in the Programme for Government.

Further detailed information in relation to mortgage interest relief is available from Tax and Duty Manual 08.03.08 which is available on the Revenue website - .