Additional Mortgage Interest Relief on Main Residence

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There is an addition main residence mortgage interest tax relief scheme up to a value of €1,250 for 2023, which was extended to 2024 in the recent budget. The tax relief applies to interest paid on your main residence, it is at standard rate of income tax and is based on the increase in interest paid in 2023 over interest paid 2022.  For 2024 the relief will be calculated on the increase in interest paid in 2024 over 2022.  

The information needed to claim the additional mortgage relief for 2023 is as follows:

• Local Property Tax (LPT) ID
• Value of the qualifying loan at 31 December 2022
• Total amount of qualifying interest paid for the year 2023
• Amount of qualifying interest paid by the assessable person for the year 2023
• Total amount of qualifying interest paid for the year 2022
• Amount of qualifying interest the assessable person paid for the year 2022
• If the mortgage began in 2022 or ended in 2023, the date the mortgage began and/or ended
• statement from the mortgage company confirming the balance at 31st December 2022.

 The tax credit given is 20%  of the increase in mortgage interest year over year, to a maximum of €1,250. The conditions to qualify can be found here and to briefly list them they are: Qualifying conditions (revenue.ie)

• the property must be your principal private residence for 2023 (or the private residence or a dependant relative or spouse)
• on 31st December 2022 you must have had an outstanding balance on the mortgage of between €500,000 and €80,000
• you must be compliant with LPT to date to claim the tax credit

To claim the relief for 2024, you will need the information listed below (so please keep the certificate of interest paid for 2024, that you will receive early in 2025):

• Total amount of qualifying interest paid for the year 2024
• Amount of qualifying interest paid by the assessable person for the year 2024
• Value of the loan at 31st December 2023

Please visit the Revenue website  for further information.

 

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