David Cullinane (Waterford, Sinn Fein)
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185. To ask the Minister for Finance the criteria for eligibility for the mortgage interest relief scheme; if eligibility is to be changed in view of the decision to extend the scheme beyond 2017; and if he will make a statement on the matter. [32066/16]

Michael Noonan (Limerick City, Fine Gael)
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Section 244 of the Taxes Consolidation Act 1997 provides for tax relief in respect of interest paid on qualifying home loans taken out between 1 January 2004 and 31 December 2012 and used by an individual for the purchase, repair, development or improvement of a principal private residence. Single individuals and married couples/civil partners that are first-time buyers, qualify for mortgage interest relief for the first seven years of their mortgage up to a maximum ceiling of €10,000 and €20,000 respectively. In all other cases, the relief is restricted to ceilings of €3,000 and €6,000 respectively. 

The following table details the rates of tax relief available in respect of qualifying loans.

Notwithstanding the rates of tax relief listed above, Finance Act 2012 introduced a higher rate of 30% for individuals who purchased their first principal private residence on or after 1 January 2004 and on or before 31 December 2008. This higher rate of relief applies for the tax years 2012 to 2017. The rationale for this higher rate was to help address the particular problems faced by those who bought homes at the height of the property boom between 2004 and 2008.

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 at .

The gradual phasing-out of Mortgage Interest Relief has been under way since 2009. No new mortgages taken out since January 2013 have qualified for the relief, and the relief has expired for qualifying mortgages taken out prior to 2004. Relief for all remaining recipients is currently due to expire at the end of 2017. The Programme for Government contained a commitment to retain Mortgage Interest Relief beyond the current end date on a tapered basis, and in my Budget speech I confirmed my intention to extend the relief to 2020. The details of this extension will be set out in Budget 2018 next year, and the Deputy may also be aware that a review of policy considerations and potential costs of such an extension was contained in the Income Tax Reform Plan published by my Department in July this year.