Richard Bruton (Dublin Bay North, Fine Gael)
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388.To ask the Minister for Finance the take-up of the mortgage relief scheme in Budget 2024; the average value of the relief paid; and if any provision has been made for renewing it for a further year.[35864/24]

Jack Chambers (Dublin West, Fianna Fail)
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Mortgage Interest Tax Relief is a one-year temporary relief, which is 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 also 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.

The tax relief is at the standard rate of income tax and is based on the increase in interest paid in 2023 over interest paid in 2022. The value of the relief will be equal to the lesser of 20 per cent of this excess interest figure, or €1,250. This means that the maximum tax relief will be €1,250 per property.

Where the interest payments made in respect of either the 2022 or 2023 tax years are not for a full year, pro-rating of the relief will apply, to ensure interest is applied on a period of equivalence basis and that the cap is adjusted accordingly. Revenue’s systems will carry out the calculation of the relief at the point of claim.

In order to avail of the relief, the taxpayer must file a 2023 Income Tax Return and upload certificates of mortgage interest for both 2022 and 2023, together with confirmation of their mortgage balance as of 31 December 2022. Furthermore, the taxpayer must be compliant with Local Property Tax requirements and must have paid income tax in 2023. The relief operates by way of a credit offset against a taxpayer’s income tax liability for 2023.

I am advised by Revenue that as of 4 September 2024, 25,283 taxpayer units made claims for the Mortgage Interest Tax Relief totalling €17.2 million on their 2023 PAYE income tax return. 22,651 claimants received a refund of tax, which may have included a refund in respect of other credits and reliefs, such as health expenses. The total of refunds issued is over €21.8 million, and the average refund per taxpayer unit is €964.52.

A further 2,329 claimants are either in a balanced position or had an underpayment reduced by the credit being applied to their record. The remaining 303 claimants are not in a position to benefit from the credit as they did not pay Income Tax in 2023.

Finally, information is not yet available for self-assessed taxpayers as these taxpayers have until 31 October 2024 to submit their 2023 Income Tax Return.

As the Deputy will be aware, it is a longstanding practice of the Minister for Finance not to comment, in advance of the Budget, on any tax matters that might be the subject of Budget decisions.

Richard Bruton (Dublin Bay North, Fine Gael)
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389.To ask the Minister for Finance the take-up of the landlord relief announced in Budget 2024; the cost of the relief; and if he will make a statement on the matter.[35865/24]

Jack Chambers (Dublin West, Fianna Fail)
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Budget 2024 contained a suite of measures in the context of housing policy including the introduction of a new tax relief known as Residential Premises Rental Income Relief (RPRIR). RPRIR provides relief, at the standard rate, on a portion of a landlord’s residential rental income.

The relief is €3,000 in the tax year 2024, €4,000 in the tax year 2025 and €5,000 in the tax years 2026 and 2027, which is equivalent to a tax credit of up to €600, €800 and €1,000 respectively.

I am advised by Revenue that as RPRIR applies to income from the tax year 2024 onwards and given that there are qualifying conditions as at 31 December 2024 that need to be satisfied, no claims have been received to date and are not expected to be received until 2025.

The first year cost of RPRIR is estimated to be €45 million and the full-year cost is estimated to be €160 million.

Further information on RPRIR is available at the following link: revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/land-and-property/rprir/index.aspx