Mortgage interest relief scheme opens for homeowners

February 1, 2024

From today, PAYE taxpayers can submit claims for mortgage interest relief for last year.

The relief aims to help homeowners who have borne the brunt of interest rate hikes.

Around 208,000 households are eligible, with the relief capped at €1,250 per property.

The Government said self-assessed taxpayers will be able to claim the relief from mid-February.

The Minister for Finance announced the introduction of the temporary one-year scheme in Budget 2024.

It will cost the exchequer around €125 million.

Who is eligible?

The relief is only available to tracker mortgage holders and those on variable rates – not those with fixed rate mortgages.

You must have an outstanding mortgage balance between €80,000 and €500,000 at the end of 2022 in order to benefit.

The relief is only available to those who have seen their mortgage interest bill for 2023 increase on 2022.

Relief will be available on the increased interest paid on the mortgage in 2023 as compared with the amount paid in 2022, at the standard rate of 20% income tax, up to €1,250.

Minister for Finance Michael McGrath said the Government is “acutely conscious” of the impact increases in interest rates have had on many mortgage holders.

“Last week, I launched a public information campaign to raise awareness among taxpayers of the range of tax credits and reliefs available and how they can claim those credits and relief,” Minister McGrath said in a statement today.

“As I have stated many times, I encourage all taxpayers to avail of the full suite of credits and reliefs available to them, including Mortgage Interest Tax Relief,” he added.

Details on how to submit a claim for mortgage interest relief can be found online at Revenue.ie.

Article Source – Mortgage interest relief scheme opens for homeowners – RTE

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