Relief is given at source by the home loan provider. Loans taken out after 31.12.2012 do not qualify (s 244).
Relief depends on whether the homeowner is:
FTBs: in Y1-Y7 maximum relievable interest is:
For FTBs the relief rate is:
NFTBs: the maximum relievable interest is €6,000 (M/W) or €3,000 (S) and the relief rate is 15%.
This 40% limit also applies to a sportsman or sportswoman.
Public servants get a deduction for Additional superannuation contributions (ASC).
The overall annual earnings limit for pension contributions is €115,000 (s 787B).
Unless you have a personal fund threshold (PFT), the standard fund threshold is €2,000,000 and the maximum tax-free lump sum on retirement is €200,000.
The table below indicates the maximum company funding allowed where normal retirement age is 65.
Male Single% of salary
To be tax effective, a covenant must be payable to:
The maximum income that be tax-effectively covenanted is 5%, but this limit does not apply to income covenanted to an individual who is permanently physically or mentally handicapped (s 792).
This is given at 25% of the increase in stock value (s 666), 100% in the case of a young trained farmer (s 667B), and 100% to the extent that proceeds of compulsory livestock disposals are reinvested in replacement livestock (s 668).
Under EU State aid rules, the maximum combined stock relief and stamp duty relief claimable by a young trained farmer is €70,000.
Provides an income tax credit of 13.5% of qualifying home improvement expenditure. It is paid over the two years following the year in which the work was carried out. The minimum qualifying expenditure is €5,000; the maximum is €30,000. Expires 31.12.2018 (s 477B).
Provides for an income tax rebate for “first time purchasers” (s 477C). To qualify, the property must be purchased or built as a principal private residence. The mortgage must be at least 70% of the purchase price, or for self-builds, 70% of the valuation approved by the mortgage provider.
From 19.07.2016-31.12.2016 the maximum relief is the lower of;
From 01.01.2017-31.12.2019, the same conditions apply but the valuation is between €400,000 and €500,000, with no relief granted on any property over €500,000.
Note: Cash buyers do not qualify for the relief and you can not avail of the relief if you have previously bought, built or inherited a property, either individually or jointly with another party.