Michael McGrath (Cork South Central, Fianna Fail)
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As the Deputy will be aware, this Government is acutely conscious of the impact of rising interest rates and mortgage costs on many taxpayers. It is for this reason, I introduced a temporary one-year, targeted form of mortgage interest tax relief as part of Budget 2024.

Mortgage interest tax relief will be available to taxpayers in respect of their principal private residence in the State where the outstanding mortgage balance was between €80,000 and €500,000 on 31 December 2022 and the taxpayer is compliant with Local Property Tax requirements.

The relief will be available at the standard rate of income tax in respect of the increase in the interest paid between the calendar year 2022 compared to the calendar year 2023. The value of the relief will be equal to the lesser of 20 per cent of the increased interest paid or €1,250, applying on a per property basis. Thus, maximum relief of €1,250 per property.

To claim the mortgage interest tax relief, the taxpayer must file a tax return with Revenue. The relief will operate by way of a credit offset against the taxpayer’s income tax liability in 2023. It is anticipated that the relief may be claimed in early 2024.

As the Deputy will appreciate it is not possible or desirable for the Government to alleviate the full impact of the increased interest rates for all mortgage holders. Some mortgage holders, will be in a much stronger position and will have the capacity to absorb the impact of the recent increases in mortgage rates. I believe the parameters of the relief that I have set are appropriate and sufficiently targeted.