Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 235 to 239, inclusive, together.

Mortgage Interest Tax Relief is available to home owners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022.

Mortgage Interest Tax Relief is available to qualifying claimants at the standard rate of tax and is based on the increase in the interest paid in 2023 over interest paid in 2022 up to a maximum of €1,250. This equates to 20 per cent of the maximum qualifying interest of €6,250.

Where the interest payments made in respect of either the 2022 or 2023 tax years are not for a full year, pro-rating of the relief will apply, to ensure interest is applied on a period of equivalence basis and that the cap is adjusted accordingly.

In order to avail of the relief, the taxpayer must file a 2023 Income Tax Return and upload their certificate of mortgage interest for 2022 and 2023, and confirmation of their mortgage balance at 31 December 2022. Furthermore, the taxpayer must have paid Income Tax in 2023 and be compliant with Local Property Tax requirements.

I am advised by Revenue that, as of 7 March 2023, 12,107 PAYE taxpayer units have made a claim for the Mortgage Interest Tax Relief on their 2023 tax return. Of these, 138 claimants are not in a position to benefit from the credit as they did not pay Income Tax in 2023, a further 137 claimants paid tax which was less than the full credit which they claimed, and 11,832 claimants have fully benefited from the credit. Data is not available in respect of the number of people who may be entitled to claim the tax credit but who have not yet filed a return and made a claim.

I am further advised that of those claimants who benefited from the credit, 11,050 taxpayer units received a refund of tax totaling €10 million, with 919 taxpayer units either in a balanced tax position or had an underpayment reduced, by the credit being applied to their record. Revenue notes that other credits and reliefs claimed, such as health expenses, may also have contributed to the overall amount of refunds issued.

Finally, information is not yet available for self-assessed taxpayers as these taxpayers’ have until 31 October 2024 to submit their 2023 Income Tax return.