Owner-Occupiers and First-Time Buyers:
From 1 January 2002, mortgage interest relief will be granted by the bank/mortgage provider and will no longer be included in your tax free allowance certificate or your annual income tax return. An individual's monthly mortgage payments should be reduced by the tax relief available. However, the onus is on the taxpayer to contact their bank/mortgage provider to ensure that they have all relevant particulars of the borrower so as to enable them to reduce their mortgage by the relevant sum.
Investors:
With respect to investors, interest relief on monies borrowed to purchase or improve rented residential properties has been restored by the Minister for Finance and can be set off against rental income for the same period.
