Jennifer Murnane O'Connor (Carlow-Kilkenny, Fianna Fail)
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168. To ask the Minister for Finance the reason persons who did not pay any tax but paid PRSI and USC as PAYE workers, but were on such low pay they did not pay income tax, are not given tax relief on their mortgage increases in 2023; if there are plans to introduce a cash rebate for such mortgage holders; and if he will make a statement on the matter. [36011/24]

Jack 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.

As you may be aware, my colleague Minister Donohoe in his Budget speech stated that the Minister for Social Protection, would work to development a payment, where necessary, through the Department of Social Protection for qualifying individuals who could not benefit from the relief.

On 1 September 2024, the Department of Social Protection opened the Homeowner’s Once-Off Payment for applications. This payment is aimed to support eligible people who applied for the Mortgage Interest Tax Relief and who satisfy all other conditions but were ineligible for this tax relief because they did not have any qualifying tax liability.

The Department of Social Protection has advised that applications can only be made between 1st September 2024 and 31st March 2025. Further details about the Homeowners Once- Off Payment are available on:

www.gov.ie/dspschemes/#homes.