Written answers

Thursday, 4 July 2024

Photo of Thomas GouldThomas Gould (Cork North Central, Sinn Fein)
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92. To ask the Minister for Finance the number of people who have been approved for the mortgage interest relief and the number eligible. [28580/24]

Photo of Jack ChambersJack Chambers (Dublin West, Fianna Fail)
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Mortgage Interest Tax Relief is a one-year temporary relief, which 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. 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 relief 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.

In order to avail of the relief, the taxpayer must 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. 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.

In advance of Budget 2024, it was estimated that approximately 208,000 eligible accounts, predominantly tracker and variable mortgages, or c. 165,000 properties may be eligible for the relief.

I am 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, and 20,248 claimants received a refund of tax, which may also include a refund in respect of other credits and reliefs, such as health expenses. Of these, 253 claimants received a partial refund as the tax paid was less than that claimed. A further 2,040 claimants are either in a balanced position or had an underpayment of tax reduced. An additional 271 claimants are not in a position to benefit 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.

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