I propose to take Questions Nos. 267 and 268 together.
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 The MITR was originally made available for the 2023 year of assessment.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 credit of €1,250 per property per annum.
The relief operates by way of a credit offset against the taxpayer’s income tax liability. To make a claim for 2023 or 2024, taxpayers are required to file an Income Tax Return for that year and upload certificates of mortgage interest for both 2022 and, as applicable, 2023 or 2024, together with confirmation of their mortgage balance as of 31 December 2022.
I am informed by Revenue that taxpayers claim the MITR on their tax returns on a self-assessed basis and the eligibility is self-determined, and therefore 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. Claims are subsequently subject to normal compliance checks and taxpayers are required to retain relevant documentation for a period of six years after the claim is made.
It should also be noted that taxpayers have four years to submit claims for tax credits and tax reliefs.
2023 is the first year for which the MITR is claimable, and the table below provides the number of taxpayer units who benefitted from the MITR, broken down by county. A taxpayer unit is different to individual taxpayers as jointly assessed couples are counted as one unit.
The cost of the MITR in 2023 was an estimated €35.4 million.
|
County
|
Number of Taxpayer Units*
|
|
Carlow
|
585
|
|
Cavan
|
665
|
|
Clare
|
1,070
|
|
Cork
|
5,910
|
|
Donegal
|
845
|
|
Dublin
|
16,525
|
|
Galway
|
2,655
|
|
Kerry
|
1,000
|
|
Kildare
|
3,625
|
|
Kilkenny
|
1,020
|
|
Laois
|
945
|
|
Leitrim
|
255
|
|
Limerick
|
1,685
|
|
Longford
|
295
|
|
Louth
|
1,540
|
|
Mayo
|
890
|
|
Meath
|
3,600
|
|
Monaghan
|
460
|
|
Offaly
|
690
|
|
Roscommon
|
490
|
|
Sligo
|
515
|
|
Tipperary
|
1,260
|
|
Waterford
|
1,270
|
|
Westmeath
|
825
|
|
Wexford
|
1,555
|
|
Wicklow
|
2,105
|
|
N/A
|
35
|
|
Total
|
52,320
|
*Note: the figures included in the table are rounded
In relation to the 2024 tax year, the filing deadline for the Form 11 Income Tax Return has not yet passed. PAYE taxpayers can make claims on their Form 12 income tax return, and the table below provides the latest data in relation to these claims.
The total MITR claimed by these taxpayers is approximately €12.7 million. As outlined, these numbers exclude claims by self-assessed taxpayers. The actual cost in relation to 2024 will be available in mid-2026 once tax returns in relation to 2024 have been filed and processed and the data is prepared for analysis.
|
County
|
Number of Taxpayer Units*
|
|
Carlow
|
230
|
|
Cavan
|
225
|
|
Clare
|
365
|
|
Cork
|
1,945
|
|
Donegal
|
280
|
|
Dublin
|
5,415
|
|
Galway
|
760
|
|
Kerry
|
310
|
|
Kildare
|
1,365
|
|
Kilkenny
|
390
|
|
Laois
|
350
|
|
Leitrim
|
80
|
|
Limerick
|
640
|
|
Longford
|
100
|
|
Louth
|
580
|
|
Mayo
|
265
|
|
Meath
|
1,250
|
|
Monaghan
|
150
|
|
Offaly
|
275
|
|
Roscommon
|
140
|
|
Sligo
|
155
|
|
Tipperary
|
480
|
|
Waterford
|
465
|
|
Westmeath
|
315
|
|
Wexford
|
575
|
|
Wicklow
|
650
|
|
Total
|
17,755
|
*Note: the figures included in the table are rounded
In relation to information on the value of claimants’ mortgage balances as of 31st December 2022, I am advised by Revenue that this information is not captured for those taxpayer units who make the claim through a Form 12 return, which encompasses most claimants of this credit. Instead, the taxpayer is asked to confirm that their balance is within the specified range as of that date. For those who filed a Form 11 return, the average balance declared was €189,000.
There is no information captured as part of claiming the MITR that relates to the number of years left to repay the mortgage.
