The Finance Bill 2023 introduced a temporary one-year Mortgage Interest Tax Credit.

The credit is for taxpayers who have made payments in respect of a qualifying loan for a principal private residence.

The Mortgage Interest Tax credit is only available for the year 2023.

The relief is available to homeowners with an outstanding mortgage balance between €80,000 and €500,000 at 31 December 2022.

The credit is available in respect of the increase in interest paid in 2023 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.

For more information contact McGowan Accountancy Services. Email: nuala@mcgowanaccountancy.com