‘Parallel’ mortgage interest relief scheme for households on social welfare promised

Paschal Donohoe, the Minister for Public Expenditure, has promised that mortgage interest relief will cover households on social welfare as well as those paying income tax

A housing development under construction in Dublin. Paschal Donohoe is going to design the new scheme in co-operation with Heather Humphreys, the Minister for Social Protection, whose department will then make the payments to the mortgage holders instead of the Revenue.

Paschal Donohoe, the Minister for Public Expenditure, is working a new scheme to ensure households on social welfare can claim the mortgage interest relief in the budget.

The government is re-introducing mortgage interest relief for one year only for 165,000 households on variable and tracker mortgages at a cost of €125 million.

They will be able to get 20 per cent tax relief up to a maximum of €1,250 on the rise in their interest ...