TRS for Joint Mortgage , Basic Question

Just a quick question- cant find the answer on the revenue site.

I am starting a small joint mortgage, both ftb, not married.

Interest will be approx €4000 for year 1.

So, is the trs calculated as follows?

25% interest relief each up to a total max of 20k relief per annum
Thus we receive 50% of total interest €2,000/12 = 166 per month.

Or is it
25% interest relief to a max of 20k relief per annum
Thus we receive 25% of total interest €1,000/12 = 83 per month.

If its the latter then it seems there is no point in both of us applying for the relief, as the total interest is nowhere near the indiviual ceiling of 10k.

Can anybody advise please?

LITTLECBEAR said:

25% interest relief to a max of 20k relief per annum
Thus we receive 25% of total interest €1,000/12 = 83 per month.
please?

Click to expand...

this is it exactly

So there is only need for one of us to register for the relief then, because regardless of the number of parties to the loan, the trs is 25% and in my specific case our interest will never exceed the indiviual 10k threshold.

Yes?

My my calculations neither! Max relief is 20% up to 10k (166 per month) in your case @4k interest, this would work out at 66.66 p/m (20% of 4k) This is EACH!! provided your both on the mortgage (and deeds?)

first tim buyers first and second year get 25%

LITTLECBEAR said:

So there is only need for one of us to register for the relief then, because regardless of the number of parties to the loan, the trs is 25% and in my specific case our interest will never exceed the indiviual 10k threshold.

Yes?

Click to expand...

if you sign up both or just one of you and both are on the mortgage, you are both first time buyers for 7 years.
even if you are not claiming relief.
its probably just easier to sign you both up in case for some strange reason, you pay alot of interest.

apologies, forgot the increase for yr 1&2, so therefore MIT would be 83.33 each per month/166.66 total for both

luckystar said:

apologies, forgot the increase for yr 1&2, so therefore MIT would be 83.33 each per month/166.66 total for both

Click to expand...

you both dont get 83.33
you both get a ceiling of 10k which are added together.

so 25% of the interest or ceiling whichever is lowest
ceiling 20k interest 4k
son 25% of 4000 = 1000 and so on

Thank you for the responses.

I think the revenue website should give an emaple of calculation of trs on a joint mortgage to clarify this issue.