The Mortgage Interest Tax Credit (MITC) arose during the 2023 Budget and put simply, is a form of tax relief.

The new credit applies for 2023 only and can be utilised by taxpayers who have made mortgage interest payments in respect of a qualifying loan. The mortgage payments must have been made for a principal private residence and the credit is subject to a list of conditions in order to achieve a successful claim. 

How do I know if I qualify? 

Relief is based on the increase in interest paid in 2023 over that paid in 2022 for starters. It is important to note that increases, capped at €6,250, will qualify for relief at the rate of 20 percent. This means that the maximum credit will be listed as €1,250 per property in monetary terms. 

The type of properties that are eligible to apply for relief must be the sole / main residence of an individual or the individual’s former / separated spouse, civil partner or dependent relative. 

Within this, there are conditions that will state whether or not a loan and property meets the criteria to receive this new relief. 

Qualifying loans: 

• Must be a loan provided by a lender listed by the CBoI as a ‘credit information provider’. 

Qualifying property:

• Must be in the state 
• Must be LPT (local property tax) compliant 

How do I start claiming the credit? 

In order to make a claim for MITC, individuals must file either tax return form 11 or form 12. The following documents are required to be uploaded as part of the claim application:

• Certificate of mortgage interest 2022 
• Certificate of mortgage interest 2023 
• Confirmation of mortgage balance at December 31, 2022.

The documents should be shared through Revenue’s online services on their own website.

Additionally, the following information is also required to make a successful claim: 

• Claimant name and address 
• Claimant PPS number 
• Address and LPT number of property 
• If there is no LPT – the Eircode will be required 
• If the property is being used by the spouse or other relevant individuals – their information (as above) will also be required 

It is important to remember that restrictions will also apply where the interest periods are less than one year.

For further information on how to make the most of the MITC, visit https://www.revenue.ie/en/personal-tax-credits-reliefs-and-exemptions/mortgage/index.aspx  and get in touch today to see how we can best help you to make the most of your tax credits.