More than 200,000 mortgage holders will benefit from a once-off interest rate relief which comes into effect today.
PAYE taxpayers can now submit claims in respect of Mortgage Interest Relief for 2023 through Revenue’s myAccount service.
As set out in Budget 2024, the temporary one-year Mortgage Interest Tax Relief scheme is up to a value of €1,250.
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.
It is estimated there are approximately 208,000 mortgages eligible for the relief, with a projected cost of €125 million.
To claim this tax relief, taxpayers should file a 2023 Income Tax Return and upload their certificate of mortgage interest for 2022 and 2023, and confirmation of their mortgage balance at 31st December 2022.
The easiest way for PAYE taxpayers to claim the relief is to log into “myAccount.”
Self-assessed taxpayers will be able to claim the relief through “ROS” in mid-February.
Minister for Finance McGrath said of the scheme: “The Government is acutely conscious of the impact increases in interest rates have had on many mortgage holders. In light of this, I introduced a temporary one year, targeted Mortgage Interest Tax Relief scheme as part of Budget 2024.
“This forms a further element of a comprehensive package of cost of living supports in Budget 2024 which include energy credits, income tax and USC reductions, and welfare increases which are helping households throughout the country.
“I am pleased to announce that PAYE taxpayers can now submit a claim for this relief by logging on to Revenue’s myAccount service and filing an income tax return for 2023. Self-assessed taxpayers will be able to claim the relief in mid-February.”
A public information campaign was launched last week to raise awareness among taxpayers of the range of tax credits and reliefs available and how they can be claimed.
“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,” Mr McGrath added.