Mortgage Interest Relief Scheme came to an end on 1st January 2021

The following information explains how the system worked:

Tax relief for mortgage interest on a home loan was tax relief given to mortgage holders based on the interest paid on a qualifying mortgage i.e. a  mortgage for a home, a top up loan used for the purposes of developing or improving your home, a separate home improvement loan, a re-mortgage or a consolidation of existing qualifying loans [i.e. loans used for the purchase, repair or improvement of your home], secured on the deeds of that home.

Not every mortgage qualified:

• Mortgages taken out after 31 December 2012 DID NOT qualify for Mortgage Interest Relief .
• Mortgages taken out prior to 1 January 2004 were NOT ELIGIBLE for Mortgage Interest Relief.

Source: Citizens Information – Mortgage Interest Relief

Furthermore Mortgage Interest Relief could not be claimed for interest on a loan used to buy a holiday home, an investment property, loan/debt consolidation or for any other purpose which does not qualify for the relief.  Source: Acquiring a Foreign Property Revenue Irish Tax and Customs

Cross-border issues

Revenue only counted properties bought in the South when assessing an individual for First Time Buyer status.   However If you were living in Ireland and paying a mortgage to a qualifying lender in the State but working in Northern Ireland, you could claim Irish mortgage interest relief , provided you had a PPS number.

Other loans, such as loans in UK currency, were not eligible for relief through the Tax Relief at Source Scheme but may have been eligible for relief from the Local Inspectors Office.

Mortgage interest relief on Northern Mortgages

If your home was located in Northern Ireland relief was also available but could not be claimed through TRS. The residence could also be the sole or main residence of your former or separated spouse or a dependent relative who occupied the residence rent-free.

The following clarification was received on 19th November 2010 from The Revenue Commissioner, TRS Section:

Mortgage Interest Relief in respect of the purchase, repair, development or improvement of a persons sole or main residence in Northern Ireland continues to be allowed through the income tax system.

So if you were working in the South but living and paying a mortgage in Northern Ireland you were are not entitled to Tax Relief at Source, instead you could receive your tax relief via your employer’s PAYE system:

• TRS – The relief was given at source, by your lender, either in the form of a reduced monthly mortgage payment or a credit to your funding account
• PAYE – You paid the full mortgage amount to your lender and the relief was be added to your wages instead

It was helpful to send a letter to the address below, explaining that you are a cross border worker and wish to claim tax relief on your mortgage payments. Also include your P60 and your Certificate of (Mortgage) Interest.

The Office of the Inspector of Taxes
City Centre District
9/15 Upper O’Connell Street
Dublin 1

Telephone: 1890 333 425 or  01 865 5000 or 01 647 4444
Email: Customer Service for PAYE Customers citycentrepaye@revenue.ie
Email: Customer Service for Income Tax and Corporation Tax citycentreitct@revenue.ie

See also:

• Citizens Information – Mortgage interest relief
• Revenue Irish Tax and Customs step-by-step guide on Tax Relief for Mortgage Interest Paid on a Home Loan

Page last checked: August 2022

This webpage is for general information purposes only and while we endeavour to keep it up-to-date, errors may occur. It is very important that you check with the relevant body to ensure the information is current and is applicable to your situation.

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