5. MORTGAGE INTEREST RELIEF
Prior to Finance Act 2013 Mortgage Interest Relief was due to expire at the end of 2012.
Section 9 Finance Act 2013 introduced transitional provisions in relation to mortgage interest relief which allows certain loans taken out in 2013 to be deemed to have been taken out in 2012. These include:
• A loan taken out to purchase a site for which planning permission has been obtained on or before 31st December 2012 and in respect of which a qualifying residence is built on that land or
• A loan taken out by an individual on/after 1st January 2012 and on/before 31st December 2012 which has been used for the construction of a residential premises on the site/land which the individual purchased on/after 1st January 2012 and on/before 31st December 2012.
• A facility agreement or loan agreement which was in place on/after 1st January 2012 and on/before 31st December 2012 to provide a loan to an individual which is partly drawn down in 2012 with the remainder being drawn down in 2013. The loan must be for the repair, development or improvement of a residential premises which is the individual’s qualifying residence.
It is important to remember that where planning permission is required, it must have been granted prior to 31st December 2012 for the relief to apply.