Your budget questions answered

Andrea Cassells from Ireland asked:

Re: mortgage relief. I am two years into my mortgage as a first-time buyer. Do I get the discounts going forward or will they be back dated to my first monthly payment?

The change in relief will take effect from January 1st, 2007 and will not be backdated for the first two years of your mortgage. It will apply for the next five years of your mortgage.

The relief is for seven years in total - the year in which you started your mortgage and the six subsequent tax years.

Noeleen Flynne from Ireland asked:

The paid maternity leave has increased to 26 weeks. When does this take effect?

Does your maternity leave have to start after a certain time? Also what is the situation for your entitlement to the 16 week unpaid leave?

If your maternity leave commences after March 1st 2007, you will be entitled to both the 26 weeks paid leave and the 16 weeks unpaid leave. However, if your maternity leave commences prior to March 1st, 2007, the entitlement is the 22 weeks paid leave and 12 weeks unpaid.

Karen from Ireland asked:

Does the mortgage interest relief apply to those who have already purchased a house? My boyfriend and I purchased our first home in June of this year - will we be entitled to the doubling of the mortgage interest relief announced in the budget or is it only for those first time buyers who purchase post-Budget?

Yes, you will be entitled to the new and improved rates of mortgage interest relief from next year and for every year up to and including 2012. The relief gives a maximum tax credit of €133 a month. After this you will qualify for the lower rate of mortgage interest relief available, which gives a maximum tax credit of €50.

Micheal from Ireland asked:

When do the changes in social welfare payments come into effect?

It depends. Most come into effect from next month. The increase in child benefit will be effective from April 2007 (child dependant allowance increases though will take effect from January). Changes in the amount of income disregarded for the purposes of the carer's allowance scheme are also effective from April. The automatic entitlement to the free travel companion pass will take effect from March. The widowed parent grant increase takes immediate effect. The back to school clothing and footwear allowance will take effect in June. The upper income threshold for entitlement to the one-parent family payment will be in effect from May.

Feedback

Do you think Brian Cowen has got it right with this year's Budget? Have your say on: http://www.ireland.com/focus/budget2007

A selection of comments will be printed on the business pages tomorrow.