Mortgage Interest Relief Update: Entitlement status determined by Revenue in over 75% of all Mortgage Accounts
As announced in the Supplementary Budget of 7 April, the Government decided that, from 1 May 2009, the tax relief on qualifying principal private residence loans is available only for the first seven years of the loan. This relief is generally given through the tax relief at source (TRS) system.
Since the announcement Revenue has been working to identify those who continue to be entitled to the relief (post -1 May) from an examination of its own records and by working with the financial institutions.
Revenue has now established the entitlement status of 430,000 mortgage accounts (76% of the total). Of those, 276,000 have been determined as eligible for tax relief post -1 May and 154,000 as ineligible.
Need for additional information in the balance of cases
In the case of the remaining approximately 134,000 mortgage accounts (24% of the total) definitive entitlement or non-entitlement to mortgage interest relief has not, as yet, been established.
Revenue has now started to write directly to these mortgage account holders seeking some additional information. Letters will issue to all such account holders over the next 10 days.
Simple online facility will allow quick reactivation of tax relief
Revenue has developed an online facility enabling those accounts holders to provide the necessary information in a simple and quick manner. Once the information is submitted online, Revenue will very quickly establish if a loan account is eligible for mortgage interest relief under the seven-year rule and will reactivate payment of tax relief through the TRS system without the need for any further action by the borrower. Any arrears of tax relief due back to 1 May will also be paid automatically through the TRS system.
Mortgage account holders do not need to do anything until and unless they receive a letter from Revenue. Where someone receives a letter, a response online will allow for early restoration of mortgage interest where relief is payable.
Comprehensive information on mortgage interest relief is available on the Revenue website.
[Ends: 20/05/2009]
Note for Editors
Value of Relief
The maximum relief involved with the introduction of the seven-year rule in the case of a married couple is €75 a month, or €37.50 for a single person. In many cases it would be less than these amounts.
No online access
Borrowers who do not have online access will be accommodated.