Confused about TRS

[milly123]

Hi,

I've looked at other threads and the revenue site, but am still confused.

We bought our first house in 2002 when we were single. We married in 2005 and bought a new house in 2006 (sold the old one)..

With regard to Tax relief on the interest payable - should we still be treated as First time buyers as we are still within the 7 year time frame i.e. with an upper limit of €16K

or are we treated as 'others' with a reduced limit of €6K.

We have just switched our mortgage and the interest payable for the first year is €8,540, which the bank have calculated the tax relief at source to be €92.36 per month over 11 months.

Thanks in advance.

 

[ClubMan]

With regard to Tax relief on the interest payable - should we still be treated as First time buyers as we are still within the 7 year time frame i.e. with an upper limit of €16K

I would have thought so based on the details that you have posted.

We have just switched our mortgage and the interest payable for the first year is €8,540, which the bank have calculated the tax relief at source to be €92.36 per month over 11 months.

Maybe Revenue and/or the lender simply have the wrong details and you need to make sure that they are up to date? There may also be a possibility that you were not availing of full relief available to your in past years in which case you can backdate claims for up to 4 years (i.e. 2004-2006).

 

[triplex]

you bought a house, sold it and bought a new one... you are not first time buyers and so are only entitled to the normal mortgage interest relief.

the seven years only applies if you remain in the same ppr (principal private residence) for 7 years, after which, you go onto the lower rate of interest relief automatically.

 

[ClubMan]

the seven years only applies if you remain in the same ppr (principal private residence) for 7 years, after which, you go onto the lower rate of interest relief automatically.

That's what I used to think but I am pretty sure now that it's wrong. Even if you trade up/down/sideways to another PPR then you can still avail of the remainder of your 7 year FTB status. In fact according to other posts here even if you had a PPR for 2 years, sold it and rented accommodation for 2 and then bought another PPR then you would still have 5 years of your FTP status period left! That seems to be the gist but I can't quote anything authoritative I'm afraid.

 

[milly123]

Thanks for your replies, i've been trying to get in touch with the TRS helpline, but they are having technical problems, - I will post back here when I get to speak to them

 

[davidoco]

see this thread
http://www.askaboutmoney.com/showpost.php?p=240354&postcount=49

Also you might just be unluckly with the dates as 2006 was your last FTB year under the old rules for FTB TRS. When you completed the TRS forms that the lender may have forwarded to your new mortgage you may have indicated that you were not a FTB (correctly) and that your first home loan was 2002 (correctly)

If your form went in before the budget or even in December their systems weren't updated to take account of the extra 2 years/extra allowance at FTB you could get.

A quick call and they should be able to amend it over the phone.

 

[pinkyBear]

still within the 7 year time frame i.e. with an upper limit of €16K

yes you are entitled to TRS at the full, but if the interest you pay is not €16K, it will be 20% of the interest you pay that will be deducted. The revenue will be intouch soon, if not already

 

[milly123]

Thanks for all your replies, just spke to Revenue, We are entitled to be classed as first time buyers until Dec. 2008 (first bought in Dec 2002), so our tax relief will be based on the upper limit of €16K, nice one !!!