Mortgage Interest Relief Granted

N

niallkelly14

Registered User
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28
Hi

we are a couple (not married) who are first time buyers. Say for example we pay 12k in mortgage interest in the first year are we restricted to only 8k of a tax credit becasue we are not married or do we both get the 8k seperately if we both pay the mortgage

thanks in advance
 
Your martial status is irrelevant. You each get €8K if you are both on the mortgage deeds. Relief is granted on the lower of €16K and the amount of interest actually paid (e.g. €12K in the example above).
 
My undersanding is that you can claim for 8K max each.

The reason for the 16K for married couples is that if it's a single income houshold, the partner who is working can apply for the 16K max (whereas for a single income unmarried couple, the working partner would still be restricted to the 8K).
 
No - in spite of the way things are phrased in some quarters (e.g. some people talk of the "married couple" rate of TRS which is not technically correct and a bit of an anachronism) marital status is irrelevant and it's who is on the mortgage deeds that matters. Also mortgage interest relief is granted at source so is irrelevant to whether or not the mortgage holders have income or pay tax.
 
thanks for the responses

just to develop this a bit further. Say we do pay 12k interest in year 1 do we both just automatically get a credit then for 6k irrespective of how the mortgage is paid by us

eg if i paid 2/3 of the mortgage and my partner paid 1/3, would i then get 8k of a credit and she get 4k

i am just a bit unsure on how this works
 
I think you both get a maximum of €8K regardless of how the mortgage costs are split between you - i.e. you get relief on the lower of €16K or the amount of interest actually paid. Check the TRS1 form or ask Revenue if in doubt.
 
Hi Niall,

As you are FTB's and providing your still in the first 7yrs of your mortgage your relief is calculated as follows:
Your entitled to a maximum relief of €16k, providing your paying that amount in interest!

Because you are paying €12k interest you will not get the full relief.
The calc is as follows:
€12000 x 20% (lower tax band) =2400pa/200pm

It is determined by the amount of interest you pay, and the amount of interest you pay is determined by your interest rate.

The full relief is €16000 x20%=3200pa/266.66pm.

regards
Lillyellen
 
lillyellen said:
Hi Niall,

As you are FTB's and providing your still in the first 7yrs of your mortgage your relief is calculated as follows:
Your entitled to a maximum relief of €16k, providing your paying that amount in interest!

Because you are paying €12k interest you will not get the full relief.
The calc is as follows:
€12000 x 20% (lower tax band) =2400pa/200pm

It is determined by the amount of interest you pay, and the amount of interest you pay is determined by your interest rate.

The full relief is €16000 x20%=3200pa/266.66pm.

regards
Lillyellen
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Can I ask - We are both single and are drawing down our mortgage within the next 3 weeks - Do we each need to apply for mortgage interest relief from the revenue? How long does it take to get put in place?
thanks
B
 
bobo said:
Can I ask - We are both single and are drawing down our mortgage within the next 3 weeks - Do we each need to apply for mortgage interest relief from the revenue? How long does it take to get put in place?
thanks
B
Click to expand...
Yes - as ClubMan says, one form each. They'll associate both with the mortgage account. It's currently taking about four weeks for them to process forms, so the more promptly you do it the better.

ClubMan - martial status? :D
 
Dreamerb said:
Yes - as ClubMan says, one form each. They'll associate both with the mortgage account. It's currently taking about four weeks for them to process forms, so the more promptly you do it the better.

ClubMan - martial status? :D
Click to expand...

Thanks for that guys. I didn't know it would take so long. I havent drawn down the mortgage yet as closing isn't until 2nd week in April - given this could i send the forms off now?
 
I'm not sure that you can send in the forms until you draw down the mortgage. Ask your lender or Revenue or check the form.
 
you can apply for relief now but i would advise you dont,
i did before i drew down my mortgage which was january and im still waiting on relief,i have been on to revenue and bank asking when i will get it and i was told that because i applied for it before we drew down that it takes longer to process your application.
so i would advise that you hold off.
 
lainycool said:
you can apply for relief now but i would advise you dont,
i did before i drew down my mortgage which was january and im still waiting on relief,i have been on to revenue and bank asking when i will get it and i was told that because i applied for it before we drew down that it takes longer to process your application.
so i would advise that you hold off.
Click to expand...

thanks for that.
 
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