A NEW SCHEME of mortgage interest tax relief for certain homeowners will open from today. 

According to the Government, the Mortgage Interest Tax Relief is available to homeowners with an outstanding mortgage balance on their principal private residence of between €80,000 and €500,000 on 31 December 2022 and who are compliant with Local Property Tax requirements.

These homeowners will be able to submit a claim for relief that will be equal to 20% of the increased interest paid in 2023 compared to 2022, or €1,250, whichever is lesser.

The scheme is now open to PAYE taxpayers who fall into this category. They can apply for the relief through Revenue’s myAccount service.

The Government estimated there are about 208,000 mortgages eligible for the scheme, with the projected cost being €125 million.

People can claim it by filing an Income Tax Return and uploading their certificate of mortgage interest and confirmation of their mortgage balance at 31 December 2022.

McGrath in a statement welcomed the launching of the scheme, saying that it was part of measures that were “helping households throughout the country”.

Main opposition party Sinn Féin last year called for help for mortgage holders in the budget. The party put forward a motion in the Dáil last September that would have seen a temporary and targeted scheme put in place at the time.