Mortgage Interest Relief - 1st time buyer or not?

S

scudder

Guest
Hi

A few years ago I received a cash gift. I used this to purchase an apartment.

I'm now married & am buying a house with my husband. He has no property in his name.

Are we entitled to first time buyer mortgage interest relief? I don't have a mortgage on the apartment so this is my first mortgage as well as my husbands.

What is the best way to structure this so as to maximise the tax relief?

Thanks
 
You are not a FTB for stamp duty purposes so you are jointly not FTBs for SD purposes. If the property is not exempt from SD for owner occupiers (e.g. a new home under 125sqm - there are other situations in which SD will be 0% for owner occupiers too) then this will impact your SD liability.

Separate from this you have as many years of your 7 year FTB owner occupier mortgage interest relief period left as you have not previously used up. Your husband should have his full 7 years of this preferential relief.

If your husband could purchase the property in his sole name then it may be beneficial from a SD perspective. However you should check that this is legitimate and what the implications might be (e.g. for you and your entitlement to a share in the property - the Family Home Protection Act may be relevant but it might not be prudent to depend on this alone) by asking your solicitor to explain matters to you.
 
Thanks for the info.

Can you please confirm my understanding:
- I bought the apt 4 years ago with no mortgage
- I can claim 3 years (7-4) first time buyer relief (even though I didn't actaully avail of the relief)
- My husband can claim 7 years first time buyer relief
 
If you bought with no mortgage, it's possible you're entitled to the full seven years. Phone Revenue and ask - you'll usually get through quickly, and they'll be able to give you a definite answer.
 
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