Mortgage interest relief can refer to two different things: a tax relief scheme in the United Kingdom that was in place from 1983 to 2000, and a tax deduction for homeowners in the United States. Here are the details for each:

Mortgage Interest Relief in the UK

• Mortgage interest relief at source (MIRAS) was a housing tax relief scheme in the United Kingdom from 1983 to 2000.
• It was introduced as a way of reducing the amount of tax relief granted to mortgage borrowers.
• It allowed borrowers to make mortgage repayments that already included tax relief on interest, instead of the traditional method of reclaiming the tax from the Inland Revenue.
• Tax relief on interest had been available since income tax was introduced in the early 19th century, but in 1969 the then Chancellor of the Exchequer, Roy Jenkins, ended this tax relief for all loans except for business purposes or for home buyers.
• Like the Option Mortgage Scheme, MIRAS also aimed to deal with the problem of inequality between borrowers.

Mortgage Interest Deduction in the US

• The mortgage interest deduction is a tax deduction for mortgage interest paid on the first $750,000 of mortgage debt in the United States.
• Homeowners who bought houses before December 16, 2017, can deduct interest on the first $1 million of the mortgage.
• Claiming the mortgage interest deduction requires itemizing on your tax return.
• You can claim the deduction on loans used to purchase, build, or improve your primary residence or second home.
• The deduction can also apply to costs related to mortgage interest, such as mortgage points.
• To claim the deduction, you need to itemize your deductions on Schedule A (Form 1040) in addition to the standard 1040 form.
• The deduction can only be taken if the homeowner’s mortgage is a secured debt, meaning they have signed a deed of trust, mortgage, or a land contract that makes their ownership in qualified home security for payment of the debt and other stipulations.
• The deduction can be taken after refinancing a home if the refinance is on a primary or secondary residence and the money was used for a capital home improvement.

In summary, mortgage interest relief can refer to a tax relief scheme in the UK that was in place from 1983 to 2000, or a tax deduction for homeowners in the US.