Cian O'Callaghan (Dublin Bay North, Social Democrats)
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542. To ask the Minister for Finance if he will consider the case of a person (details supplied) where they have been refused mortgage interest relief despite receiving the relief in 2024; and if he will make a statement on the matter. [46252/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Finance Act 2023 introduced the Mortgage Interest Tax Relief (MITR). The MITR was originally made available for the 2023 year of assessment. However, in Finance Act 2024, it was extended to include the year 2024.

The relief is available to homeowners with an outstanding mortgage balance between €80,000 and €500,000 as of 31 December 2022. The relief 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. Furthermore, the taxpayer must be compliant with Local Property Tax requirements.

The relief is available in respect of the increase in interest paid in 2023 over interest paid in 2022. It is also available in respect of the increase in interest paid in 2024 over interest paid in 2022. The amount qualifying for relief at the standard rate of tax (20%) is capped at €6,250 per property. This is equivalent to a maximum tax relief of €1,250 per property per annum.

As the relief operates by way of a credit offset against the taxpayer’s income tax liability, an individual will only be in a position to benefit where they have paid sufficient Income Tax in the relevant tax year.

In relation to the specific case raised by the Deputy, I am advised by Revenue that the individual did not have a 2023 Income Tax liability to set the credit against.

This is the normal way in which tax credits operate and I currently do not have any plans to alter this approach in the case of the MITR.