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Mortgage interest relief to end - but first time buyers exempt from property tax until 2016

The mortgage relief measure introduced in last year’s Budget will come to an end this month.

Image: Africa Studio via Shutterstock

THE MORTGAGE RELIEF measure introduced in last year’s Budget will come to end on 31 December, but first-time buyers will be given a different break.

New homes bought by first-time buyers, or unoccupied homes bought, will be exempt from new property tax up until 2016.

This exemption for three years from the Local Property Tax will also apply to residences in unfinished estates.

Some other homeowners will be able to defer payment of the Local Property Tax in certain circumstances also. For income stressed owner-occupiers with an outstanding mortgage, an adjusted gross income limit will apply; if gross income less 80 per cent of mortgage interest falls below €15,000/€25,000 a deferral option will be available up to the end of 2017.

Property Industry Ireland welcomed the exemption from property tax of those purchasing new or previously unoccupied stock up to end 2016. However, it added that would not counteract to any major extent the ending of mortgage interest relief.

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