Gerald Nash (Louth, Labour)
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91. To ask the Minister for Finance the number of applications made to the Revenue Commissioners to 1 June 2024 for the mortgage interest tax relief scheme on a county-by-county basis; if he will provide details of the number of successful and unsuccessful applications, by county; the cost of the scheme up to 1 June 2024; the average mortgage account balance for successful applicants; the average number of years left on eligible mortgages for successful applicants; and if he will make a statement on the matter. [26549/24]

Michael McGrath (Cork South Central, Fianna Fail)
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Mortgage Interest Tax Relief is 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 as of 31 December 2022, and the taxpayer is compliant with Local Property Tax requirements. The relief also extends to a qualifying property located in the State, which is the sole or main residence of the individual’s former or separated spouse or civil partner or a dependent relative.

The tax relief is at the standard rate of income tax and is based on the increase in interest paid in 2023 over interest paid in 2022. The value of the relief will be equal to the lesser of 20 per cent of this excess interest figure, or €1,250. This means that the maximum tax credit will be €1,250 per property.

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. Revenue’s systems will carry out the calculation of the relief at the point of claim.

To make a claim, taxpayers are required to file a 2023 Income Tax Return and upload certificates of mortgage interest for both 2022 and 2023, together with confirmation of their mortgage balance as of 31 December 2022.

I am advised by Revenue that the mortgage balance for claimants, while provided to support the claim, is not recorded in a way that can provide macro level data as requested. In addition, there is no criteria in relation to the number of years left on a mortgage to qualify, therefore this is not requested or required by Revenue to administer the relief and so is not available.

I am further advised by Revenue that as of 13 June 2024, 22,559 PAYE taxpayer units made a claim for this credit on their 2023 PAYE income tax return. 20,248 claimants received a refund of tax, totalling just over €19 million. Of these, 253 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 2,040 claimants are either in a balanced position or had an underpayment reduced by the credit being applied to their record. An additional 271 claimants are not in a position to benefit from the credit as they did not pay any Income Tax in 2023.

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

Revenue have provided a county-by-county breakdown of all claims below. A further breakdown of the number of successful and unsuccessful applications by county was not available as this relief is administer via a self-declared/assessed tax credit. Revenue do not have details on the numbers of taxpayers who did not progress with their claim, as they did not complete the required details/fields on their Tax Return.