Revenue has published an article from Tax Briefing 77 which clarifies certain amendments to section 244 TCA 1997 (relief for interest paid on certain home loans) as introduced by section 3 FA 2009.
Section 244 provides that, subject to certain conditions, an individual may claim tax relief in respect of interest paid on a qualifying loan. Section 3 FA 2009 amended section 244 so that from 1 May 2009, interest paid will only qualify for relief for the first 7 years of the life of that loan.
Tax Briefing 77 illustrates the amendments introduced by FA 2009 in situations where; interest is paid on two separate qualifying loans where each such loan is advanced at different times and interest is paid on a loan that has been 'topped up'.
The article clarifies the interaction of the '7 year tax life' and the specified rate of interest used to calculate the taxable benefit in kind arising from the use of a preferential loan to which section 122 TCA 1997 applies.
The full article is available here