Mortgage interest tax credit on a main residence raised to 40% for the first year

Article 13 of the 2008 Finance Act amends Article 200 quaterdecies of the General Tax Code, created by the TEPA Act of 21 August 2007: the rate of the tax credit on interest on loans taken out to buy or build a main residence rises from 20% to 40% for interest paid in the first year of repayment. For new builds and off-plan purchases, the taxpayer may ask for the five years to be counted from completion or delivery of the home. The measure was announced after the Constitutional Council partly struck down the TEPA Act. The tax credit was abolished for purchases from 2011.