Tax Relief - Mortgages
Tax Relief - Mortgages
| First-Time Buyers: INTEREST LIMITS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Person is.. | 2007 € | 2003-2006 € | 2002 - € | 2001* | 2000/2001 | 1999/2000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Single | €8,000 | €4,000 | €3,175 | £1,850 | £2,500 | £2,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Married | €16,000 | €8,000 | €6,350 | £3,700 | £5,000 | £5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Widowed | €16,000 | €8,000 | €6,350 | £3,700 | £5,000 | £3,600 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TAX RELIEF | = INTEREST PAID** x LOW INCOME TAX RATE*** | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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*= The interest limits in the above table have been reduced to take account the "short tax year" in 2001, while 2002 amounts are in Euros. The annual level of relief has neither increased or decreased between 2002, 2001 and 2000/2001.
**subject to the above interest limits. ***Low Income Tax Rates:- - 2001 to 2007 = 20% - 2000/2001 = 22% - 1999/2000 = 24% Note: Following on from the budget for 2003, this relief now lasts for the first seven years of your first mortgage. After seven years, the relief is as stated in the table below. |
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| Second-Time + Buyers: INTEREST LIMITS | |||||||
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| Interest Limits | >2007 | >2003-2006 | >2002 | 2001 (short) | 2000/2001 | 1999/2000 | |
| Single | €3,000 | €2,540 | €2,540 | £1,480 | £2,000 | 80% x £2,500 | |
| Married | €6,000 | €5,080 | €5,080 | £2,960 | £4,000 | 80% x £5,000 | |
| Widowed | €6,000 | €5,080 | €5,080 | £2,960 | £4,000 | 80% x £3,600 | |
| Deductions* | HERE | 2003 | 2002 | 2001 | 2000/2001 | 1999/2000 | |
| Single | NIL | NIL | NIL | NIL | NIL | £100 | |
| Married | NIL | NIL | NIL | NIL | NIL | £200 | |
| Widowed | NIL | NIL | NIL | NIL | NIL | £100 | *The deduction was abolished in the December 1999 budget. Previously, the deduction was simply subtracted from your relief. |
| TAX RELIEF | = INTEREST PAID** x LOW INCOME TAX RATE*** For the tax year 1999/2000, you then reduced this amount by the relevant "deduction". |
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Important Note: The interest limits in the above table have been reduced to take account the "short tax year" in 2001, and for the Euro in 2002. The annual level of relief has neither increased or decreased between 2002, 2001 and 2000/2001.
**subject to the above interest limits. ***Low Income Tax Rates:- - 2001 to 2007 = 20% - 2000/2001 = 22% - 1999/2000 = 24% |
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| Example: Niamh and Alan are second time house buyers (married). They pay €6,000 in mortgage interest for the tax year 2007. Their tax relief is as follows: |
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| Tax Year | 2007 | ||
| Tax Relief | €6,000 x 20% = €1,200 | ||