I am informed by the Revenue Commissioners that the cost to the Exchequer of tax relief allowed for mortgage interest relief under the tax relief at source, TRS, system in each of the years 2002 to 2005 inclusive is:
Tax Year
|
Cost € million
|
|
€ million
|
2002
|
192.8
|
2003
|
220.7
|
2004
|
231.5
|
2005
|
279.0
|
The position is that section 244 of the Taxes Consolidation Act 1997 places limits on the amount of interest for which mortgage interest relief may be claimed. In the case of first-time buyers in the first seven years of a mortgage, the limits are €4,000 per year for a single person and €8,000 per year for a married couple. For those who are other than first time buyers in the first seven years, the limits are €2,540 per year for a single person and €5,080 per year in the case of a married couple. Section 244 does not impose any ceiling on the size of mortgages to which the relief applies or on the amount of interest that might be charged on such mortgages.