Mortgage interest relief is a tax relief based on the amount of qualifying mortgage interest that you pay in a given tax year for your principal private residence (your home). Relief is normally available only in respect of interest paid on a loan obtained and used for the purchase, repair or improvement of a sole or main residence.
Who & When can you claim relief on Mortgage Interest?
An individual can claim interest relief on a sole or main residence once its located in the State, Northern Ireland or Great Britain. The residence must be that of the claimant, the claimant’s former or separated spouse or a Dependent Relative in respect of whom the claimant is being granted Dependent Relative Tax Credit and for whom the residence is provided free of rent or any other consideration.
If you began mortgage payments in 2003 or earlier, your entitlement to interest relief expired in 2009.
For a mortgage taken out between 1 January 2004 and 31 December 2012, your entitlement to relief will continue until the end of 2017.
Mortgages taken out after 31 December 2012 do not qualify for mortgage interest relief.
Sole or Main Residence can include the following:
- Mobile Home (provided it meets certain criteria)
How will my Tax Relief be calculated?
There are different rates applicable depending on one’s circumstances i.e. first time buyers, non-first time buyers. Also, the amount of mortgage interest on which you can get relief is subject to your situation i.e. single, married, widowed etc. For further information on this please feel free to contact us and we will be more than happy to assist.
Examples Of Qualifying Loans (for a sole or main residence)
- Extensions, purchase/construction of a garage, garden shed, greenhouse
- Construction of driveway, path
- Conversions, painting and decorating
- Central heating installation
- Rewiring and plumbing