Mortgage Interest Tax Credit
Overview
The Finance Act 2023 introduced the Mortgage Interest Tax Credit. This tax credit is for taxpayers who have made payments in respect of a qualifying loan for a principal private residence. The Mortgage Interest Tax Credit was originally only available for the year 2023. However, in Finance Act 2024, it has been extended to include the year 2024.
The value of the credit, and all qualifying criteria, remain unchanged for 2024 claims. The relief is available to homeowners with an outstanding mortgage balance between €80,000 and €500,000 as of 31 December 2022.
The credit is available in respect of the increase in interest paid in 2023 over interest paid in 2022. It is also available in respect of the increase in interest paid in 2024 over interest paid in 2022. The amount qualifying for relief at the standard rate of tax (20%) is capped at €6,250 per property. This is equivalent to a maximum tax credit of €1,250.
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