Thousands of Irish homeowners are eligible for a tax refund of up to €1,250 but haven't claimed it. The Mortgage Interest Tax Credit was introduced to help homeowners impacted by rising interest rates. Revenue reports over €100 million in unclaimed relief.
Many homeowners in Ireland are missing out on a potential tax refund of up to €1,250 per year due to the Mortgage Interest Tax Credit . Introduced in October 2023 by then-minister for finance Michael McGrath, this temporary measure aims to alleviate the financial burden on homeowners impacted by the European Central Bank 's (ECB) series of interest rate hikes. These increases, pushing rates from zero to 4.
5 percent between July 2022 and September 2023, resulted in significant increases in mortgage repayments for many. While the credit was designed to benefit an estimated 208,000 homeowners, including those with tracker mortgages, standard variable rates, loans taken over by vulture funds, and those transitioning from fixed rates, only around 14 percent of eligible homeowners have applied for the tax relief. Revenue, Ireland's tax authority, reports that over €100 million in potential tax relief remains unclaimed. Of the 29,254 homeowners who did apply, the average refund received was €670, significantly lower than the maximum €1,250 available.The Mortgage Interest Tax Credit is available to taxpayers with outstanding mortgage balances between €80,000 and €500,000 on December 31st, 2022, who experienced a higher interest bill in 2023 compared to 2022. It is calculated at 20 percent of the increase in the homeowner's interest bill, capped at €1,250. Originally intended as a one-off cost-of-living measure, the credit has been extended to 2024, reflecting the ongoing impact of rising interest rates. Homeowners who qualify for the credit but haven't applied yet have until the end of 2027 to make a claim. However, it's important to note that unclaimed credits often remain unclaimed over the long term. This situation highlights a broader trend of taxpayers neglecting available tax credits
Mortgage Interest Tax Credit Ireland Homeowners Tax Refund European Central Bank Interest Rates
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