Dáil Éireann Debate, Wednesday - 9 October 2024
63. Deputy Pearse Doherty asked the Minister for Finance the first- and full-year cost of the measure to extend mortgage interest tax relief; the number of people that would benefit from this measure; and if he will make a statement on the matter. [40540/24]
Amharc ar fhreagraIn my Budget 2025 address, I announced an extension of Mortgage Interest Tax Relief for one further year to the 2024 year of assessment.For 2024, relief at the standard rate of income tax will apply in respect of the increase in interest paid in 2024 over interest paid in 2022. All other conditions pertaining to the relief remain unchanged. The relief will be capped at €1,250 per property and will be 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 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 and must have an income tax liability in 2024. The relief will operate by way of a credit offset against a taxpayer’s income tax liability for 2024. In advance of Budget 2024, the Central Bank of Ireland estimated that approximately 208,000 eligible accounts, predominantly tracker and variable mortgages, or c. 165,000 properties may be eligible for the relief and estimated the cost of the Budget 2024 measure at €125 million.
In advance of Budget 2025, given the relatively limited changes to the relief, no significant change in the number of eligible accounts was anticipated, however, a revised outer cost in the region of €140 million was estimated. However, having regard to the current take-up of the relief and the average claim value to date, the cost of extending Mortgage Interest Tax Relief was estimated to be €40 million on a once-off basis for Budget 2025.
