another mortgage relief question

S

shoppergal

Registered User
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172
i wonder if anyone can answer this.

have bought a house with my boyfriend and just waiting for it to be built.

About 6 years ago my parents bought a house. At the time for financial reasons my name and income were included on the mortgage application and as far as i know on the property deeds as well.

Now I've never claimed any mortgage relief on the mortgage on the house and don't consider myself to be an "owner".

However would this mean that only my boyfriend is able to claim the mortgage interest relief for our new house and if so how much would he be able to claim. Mortgage is €240,000 if that makes any difference.

Thanks for any replies. A bit confused by this as I'm sure you can tell!!
 
shoppergal said:
At the time for financial reasons my name and income were included on the mortgage application and as far as i know on the property deeds as well.

Now I've never claimed any mortgage relief on the mortgage on the house and don't consider myself to be an "owner".
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Sounds to me like you were a home owner whether you meant to be or not. Especially if your name was one the mortgage and deeds of the property in question. As such it would seem to be the case that you are not a first time buyer and both you and your boyfriend would only qualify for non FTB rates of mortgage interest tax relief.
 
It's probably best just to complete the TRS forms as if you are a FTB. It is unlikely (since you have never claimed TRS) that it will show up on their records. When someone starts claiming TRS they make a note of year 1 and it counts from there. Since you have no year one (as you have never applied for it) it will not show up. It would be fair and equitable to allow you FTB status. If the worst comes to the worst you will still get TRS but not at the FTB rate.
 
davidoco said:
It's probably best just to complete the TRS forms as if you are a FTB.
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Not if this involves deliberate fraud. If the original poster's name was on the mortgage and property deeds of the other property then it certainly seems like s/he was a beneficial owner of the property in question regardless of whether or not that was the original intention. This would mean that filing a TRS claim as a FTB would be fraudulent. If in doubt get independent, professional advice.
 
But isn't the TRS on mortgage interest? If she has never paid mortgage interest then she should be entitled to the TRS.
 
triona said:
But isn't the TRS on mortgage interest? If she has never paid mortgage interest then she should be entitled to the TRS.
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Correct but because she is no longer a FTB then the relief will be called calculated as such. Failure to notify of existing property on form would amount to an attempt to try to defraud the state.
 
The solicitor you have dealing for you already should be able to provide advice and do a more thorough check of your current status (from the scant information provided it does appear you no longer have FTB status and as such you and your boyfriend will only be able to recieve the non FTB TRS).

Had your boyfriend bought on his own the situation would be slightly different. However, if you try and artifically create the situation where your boyfriend buys in his name, issues of fraud, lack of security for you on the property etc. would all have to be investigated. Personally, I'd take the lower TRS and accept it as a consequence of your act of helping your parents.
 
Satanta said:
(from the scant information provided it does appear you no longer have FTB status and as such you and your boyfriend will only be able to recieve the non FTB TRS).
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As far as I can see from Revenue this is not correct: OP has lost FTB status, and therefore is entitled to the lower rate of relief. *However* unless they are married and jointly assessed, and assuming they are contributing equally to the mortgage, then Revenue will allow the higher FTB rate to the boyfriend on his share only.

[broken link removed]
(ref page 4)
 
Dreamerb said:
As far as I can see from Revenue this is not correct: OP has lost FTB status, and therefore is entitled to the lower rate of relief. *However* unless they are married and jointly assessed, and assuming they are contributing equally to the mortgage, then Revenue will allow the higher FTB rate to the boyfriend on his share only.
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I stand corrected.

Where a house is purchased jointly by persons who are not married, or by a couple who are married but elect to be assessed to tax under separate treatment, each person’s entitlement to mortgage interest relief will be reference to their separate circumstances.
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Worth crunching some numbers to ensure that the gain in TRS for your boyfriend (once you have married) is worth more than the gains in credits if any transfers may be available [e.g. if your both on the higher rate of tax you'll lose nothing and gain the TRS, if one of you is on the lower rate it will take a closer look to investigate any gains/losses].

What other issues may arrise due to the change in status after the 12 months should be looked into now. I and many others won't have investigated these before so would be of no benefit advising you.
 
Dreamerb said:
As far as I can see from Revenue this is not correct: OP has lost FTB status, and therefore is entitled to the lower rate of relief. *However* unless they are married and jointly assessed, and assuming they are contributing equally to the mortgage, then Revenue will allow the higher FTB rate to the boyfriend on his share only.

[broken link removed]
(ref page 4)
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Thanks Dreamerb. That's some consolation at least.
 
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