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Amendment of section 473C of Principal Act (mortgage interest tax relief)
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6. Section 473C of the Principal Act is amended—
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(a) in subsection (1)—
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(i) by the substitution of the following definition for the definition of “qualifying period”:
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“ ‘qualifying period’ means—
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(a) for the purposes of subsection (4), the period commencing on 1 January 2023 and ending on 31 December 2023, and
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(b) for the purposes of subsection (4A), the period commencing on 1 January 2024 and ending on 31 December 2024;”,
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and
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(ii) by the substitution of the following definition for the definition of “relievable interest”:
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“ ‘relievable interest’ has the meaning given to it—
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(a) by subsection (4), in the case of the year of assessment 2023, and
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(b) by subsection (4A), in the case of the year of assessment 2024;”,
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(b) in subsection (2), by the substitution of “a qualifying period referred to in paragraph (a) or (b), as the case may be, of the definition of that term in subsection (1)” for “the qualifying period”,
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(c) in subsection (4)(a), by the substitution of “For the purposes of this section, in respect of a claim under subsection (2) for the year of assessment 2023,” for “For the purposes of this section,”,
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(d) by the insertion of the following subsection after subsection (4):
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“(4A) (a) For the purposes of this section, in respect of a claim under subsection (2) for the year of assessment 2024, relievable interest, in relation to an individual, shall be an amount determined by the formula—
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A - B
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where—
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A is the amount of qualifying interest for the year of assessment 2024, and
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B is the amount of qualifying interest for the year of assessment 2022.
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(b) Where qualifying interest paid for a year of assessment referred to in paragraph (a) is for a period where the number of days in the years of assessment to which ‘A’ and ‘B’ in the formula in paragraph (a) relate are not the same, the amount of qualifying interest represented by ‘A’ or ‘B’, as the case may be, in the formula in paragraph (a) shall—
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(i) where the number of days in the year of assessment to which ‘A’ relates is greater than the number of days in the year of assessment to which ‘B’ relates, be determined by the following formula—
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A × D/E
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and
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(ii) where the number of days in the year of assessment to which ‘B’ relates is greater than the number of days in the year of assessment to which ‘A’ relates, be determined by the following formula—
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B × D/E
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where—
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D is the number of days in the year of assessment with the lesser number of days, and
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E is the number of days in the year of assessment with the greatest number of days.”,
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(e) in subsection (5), by the substitution of “Where, for the year of assessment 2023” for “Where, for a year of assessment”,
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(f) by the insertion of the following subsection after subsection (5):
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“(5A) Where, for the year of assessment 2024, qualifying interest referred to in subsection (4A) is for a period of less than 365 days, then—
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(a) where—
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(i) the number of days in the year of assessment to which ‘A’ in the formula in subsection (4A) relates is less than 365 and the number of days in the year of assessment to which ‘B’ in the formula in subsection (4A) relates is equal to 365, or
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(ii) the number of days in the year of assessment to which ‘B’ in the formula in subsection (4A) relates is less than 365 and the number of days in the year of assessment to which ‘A’ in the formula in subsection (4A) relates is equal to 365,
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the upper limit shall be determined by the formula—
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F × G/H
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or
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(b) where the number of days in the year of assessment to which ‘A’ in the formula in subsection (4A) relates is less than 365 and the number of days in the year of assessment to which ‘B’ in the formula in subsection (4A) relates is less than 365, then, the upper limit shall be determined by the formula—
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F × I/J
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where—
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F is €6,250,
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G is the number of days in the year of assessment with the lesser number of days,
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H is the number of days in the year of assessment with the greater number of days,
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I is the number of days in the year of assessment with the lesser number of days, and
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J is 365 days.”,
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(g) in subsection (7)(a), by the substitution of “a qualifying period referred to in paragraph (a) or (b), as the case may be, of the definition of that term in subsection (1)” for “the qualifying period”,
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(h) in subsection (8)(a), by the substitution of “the calendar year 2023 or 2024, as the case may be,” for “the calendar year 2023”,
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(i) in subsection (9)(b), by the substitution of “subsection (4) or (4A), as the case may be” for “subsection (4)”, and
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(j) in subsection (11)(e), by the substitution of the following subparagraphs for subparagraphs (i) and (ii):
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“(i) the qualifying interest paid by the claimant for—
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(I) the year of assessment 2022,
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(II) the qualifying period referred to in paragraph (a) of the definition of that term in subsection (1) to which the claim relates, or
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(III) the qualifying period referred to in paragraph (b) of the definition of that term in subsection (1) to which the claim relates,
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(ii) where subsection (9)(b) applies, the total qualifying interest paid by all of the individuals concerned for—
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(I) the year of assessment 2022,
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(II) the qualifying period referred to in paragraph (a) of the definition of that term in subsection (1) to which the claim relates, or
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(III) the qualifying period referred to in paragraph (b) of the definition of that term in subsection (1) to which the claim relates, and”.
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