TRS Amendment in Finance Act 2013

house

Registered User
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55
Hi all,
I have a query in relation to TRS.
Due to a number of different reasons i only ever had 2 draw downs on my mortgage the first in 2011 and the second in 2013 all used for the construction of my home. we had being receiving full trs until Jan 2014. when it was halved (same as the percentage of the draw down)
My problem is as follows the latest amendment Finance Act 2013 quoted below make allowance for someone to qualify for and draw down a mortgage right up to 31st of 2012 and any stage payment in 2013 also qualifies for trs. But revenue are telling me because i did not qualify for my mortgage in 2012 (first draw down was 2011) my drawn down 2013 does not qualify for trs. they refered to point 7 below.I think its a very black & white reading of the scenario with no room for common sense. I believe i should qualify for full trs as my mortgage was in place before the deadline of teh 31st Dec 2012. I believe point 8 in red gives me some chance because it refers to a mortgage in place on 1st January. My mortgage was in technically in place as drawn was done 2011, but reveune are disagreeing point blank with me.

Any thoughts? thanks

The section of act referred to is


9
.Section 244 of the Principal Act is amended by inserting the
following after subsection (6):


(7) This subsection shall apply to a loan taken out and used
by an individual

––
(


a) on or after 1 January 2012 and on or before 31
December 2012 solely for the purpose of defraying
money employed in the purchase of an estate or
interest in the land referred to in paragraph (

b) and
in respect of which the permission in subsection (10)
applies but only where a residential premises, which
is a qualifying residence in relation to that individual,
is constructed on that land, or
(

b) on or after 1 January 2012 and on or before 31
December 2013 solely for the purpose of defraying
money employed in the construction of a residential
premises which is a qualifying residence in relation
to that individual on land

––
(i) in respect of which he or she has, on or after 1
January 2012 and on or before 31 December
2012, acquired an estate or interest, and
(ii) the acquisition of which was financed by way of
the loan referred to in paragraph (


a).
(8) This subsection shall apply to a loan in respect of which
there was in place, on or after 1 January 2012 and on or before
31 December 2012, an agreement evidenced in writing to
provide that loan to an individual and

––
(


a) part of that loan is used in the period 1 January 2012
to 31 December 2012, and
(

b) the balance of that loan is used in the period 1
January 2013 to 31 December 2013,
by that individual solely for the purpose of defraying money
employed in the repair, development or improvement of a residential
premises which is a qualifying residence in relation to
that individual.

 
Hi House,

Did you have any luck with Revenue trying to get your TRS refunded?

We are having a similar issue. The only difference with our situation is that we actually start building in 2012 and continued in 2013 with roughly half the mortgage drawn down in stages in 2012 & the other half in 2013.

We have had our TRS reduced by half since January of these year on the basis that we did not buy our site with a portion of our mortgage loan.

We are having awful trouble arguing our case that the site was gifted to us from a Parent and that the mortgage loan was solely used to build our house.

They have quoted 4 conditions from the same paragraph of theFinancial bill that you have highlighted but as we didn't buy our site we are been refused TRS for the draw downs in 2013.

Has anybody else had these issues and did Revenue allow or for that matter deny the TRS for 2013 drawdowns??

Any help or advise would be much appreciated.

Cheers, Boomboom
 
Hi,

We have had the exact same problem as you BoomBoom, we had only a quarter of our mortgage drawndown in 2012 and has just been told by Revenue that we are only entitled to TRS on the quarter from now on, as we did not purchase the site from our mortgage funds. Our site was gifted to us, but I was told by Revenue that even if we had paid from this from our savings we would still not be entitled to the full TRS, as the site had to be paid from the mortgage.

However, we got our full TRS for the entire year of 2013, this appears to be only coming to light with Revenue in the 2014 year.

I have read the Finance Act and unfortunately it is stated in this, this was never highlighted in any budget summary and seems to be brought in very subtly by Revenue. This so called concession that Revenue introduced in Finance Act 2012 by allowing mortgage interest relief on loans lapping over 2012 and 2013 can only be a benefit to a small number of people when they disallow a large portion of it based on the site issue.

However, it seems that if I built an extension onto my existing own home, I would be entitled to full TRS irrespective of how I ever paid for that site!!

This is completely unfair & I do intent to continue to argue with Revenue on this.

Has anyone had any luck arguing this with Revenue, or dealing with Revenue on this?
 
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