Thomas Gould (Cork North Central, Sinn Fein)
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19. To ask the Minister for Finance the number of people who claimed mortgage interest tax relief last year; and the average payment. [15219/24]

Michael McGrath (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 19 and 34 together.

Mortgage Interest Tax Relief (MITR) 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.

It is available at the standard rate of income tax and is based on the increase in the interest paid in 2023 over interest paid in 2022. The value of the relief is equal to the lesser of 20 per cent of this excess interest amount or a maximum of €1,250.

Where the interest payments in respect of either the 2022 or 2023 tax years are not for a full year, pro-rating 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 be compliant with Local Property Tax requirements and must have paid income tax in 2023. The relief operates by way of a credit offset against a taxpayer’s income tax liability for 2023.

I am advised by Revenue that, as of 3 April 2024, 17,059 taxpayer units made a claim for this credit on their 2023 PAYE income tax return. 14,762 claimants received a refund of tax, with the average refund paid of €951.74 and the total of refunds issued is in excess of €14 million. Of these, 188 claimants paid tax which was less than the full credit claimed. Revenue notes that other credits and reliefs claimed, such as health expenses, may also have contributed to the overall amount of refunds issued.

A further 2,091 claimants are either in a balanced position or had an underpayment reduced by the credit being applied to their record. An additional 206 claimants are not in a position to benefit from the credit as they did not pay any income tax in 2023.

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

In summary, a claimant must have an income tax liability to benefit from the credit. If a claimant has no income tax liability (for whatever reason), he or she will not benefit from the credit. If the credit due exceeds the claimant’s income tax liability, the credit will apply to the extent that it reduces the claimant’s income tax liability for 2023 to nil.