TRS finished Today

D

Davob

Guest
Hello All,

I received a letter from my mortgage lender today that our TRS will finish tomorrow. Wow talk about a shock!!

We moved into our house in september 2003 and it appears that we are not elligible for the extension as per the last budget. I phoned the revenue and they said that I should send in a email to them and if they get enough it may force the minister to change his mind!! yeah right!!!

I would like to know if there are any others here that are affected by this and just how can the government discriminate for those who bought houses in 2003.

We are a one income family with 2 children and my wife works in the public sector, so we have been hit so many times I have started thinking about moving to another country.

Any thoughts or advice would be much appreciated.

Regards

Daithi
 
I also received one of these letters yesterday saying that our TRS is finished now. Didn't expect it, probably should have. Daithi can you refresh my memory re the extension at last years budget? I remember hearing something about TRS in the budget but obviously ignored it! I also bought in 2003.
 
Hi Lou,

it seems that anyone who bought their house in 2004 gets an extension on their TRS until 2017. I just don't understand how they can just decide on which year to make the cut.

regards

Daithi
 
Davob said:
Hi Lou,

it seems that anyone who bought their house in 2004 gets an extension on their TRS until 2017. I just don't understand how they can just decide on which year to make the cut.

regards

Daithi
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Can you clarify that I bought in early 2004 so my TRS has been extended till 2017 barring any changes in upcoming budgets- that is good news- was not sure.
 
I'm the same, rang Revenue and they updated their systems and are notifying the bank to extend the relief. You should do the same.
 
lou2 said:
I also received one of these letters yesterday saying that our TRS is finished now. Didn't expect it, probably should have. Daithi can you refresh my memory re the extension at last years budget? I remember hearing something about TRS in the budget but obviously ignored it! I also bought in 2003.
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"Qualifying loans taken out before 1 July 2011 will continue to get relief for 7 years. Transitional measures will be provided for qualifying loans taken out between 1 July 2011 and end 2012.

Those whose entitlement to relief would, in the absence of this change, expire in 2010 or after, will continue to qualify for relief at the applicable rate up until end 2017.

Abolition of the relief entirely by end 2017."

If you bought in 2003, your 7 years expires at the end of 2009.
 
That's good news for some - I rang Revenue the day after the budget & was told that the extension definitely only applied to people who find themselves in negative equity & each case would be decided on an individual basis, but have just rang them again & they said that this is not now the case, & they have no idea why the minister mentioned negative equity with regard to the extension, as it doesn't matter. This makes more sense, but it does seem a bit harsh for people who borrowed in 2002/2003.
 
I also think that it is harsh for people who bought in 2002/3 - I just don't know how they came to this decision, are they just trying to ruin the lives of honest working people?
 
I just don't know how they came to this decision, are they just trying to ruin the lives of honest working people?
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Are you for real ? They pick a date i.e. 2010 onwards. Should they change it once someone squeals that its unfair when they are out by one month ? So they change it to 2009 then all the people from 20001/02 start squealing. And it goes on and on. Why did you get a shock when the TRS stopped ? It was clear that it lasts for seven years on PPR. Nothing complicated about it.
 
I think it's unfair also...

It seems that if you bought in 2004 you get relief until 2017... hoever if you buy in 2003 you only get support until 2010, that's a massive difference.

If I'm understanding it correctly, there seems to be some confusion... a fair way would be that everyone gets seven years, not some people getting 7 years and others getting 13.

How much would the relief by worth on 300,000 at 4%, is it worth approx 3,000 a year?, or 18,000 over the extra six years? An appreciable amount it must be said.
 
well, if I could choose between paying my mortgage on the price my house would have been in 2003 and not getting anymore TRS or getting TRS until 2017 on the 2006 price I paid for my house, I know what I'd pick!!!
 
Yes, I am for real. If you can tell me why I am different to someone who bought a house in jan 2004 then by all means go ahead.
 
JoeBallantin said:
I think it's unfair also...

It seems that if you bought in 2004 you get relief until 2017... hoever if you buy in 2003 you only get support until 2010, that's a massive difference.

If I'm understanding it correctly, there seems to be some confusion... a fair way would be that everyone gets seven years, not some people getting 7 years and others getting 13.

How much would the relief by worth on 300,000 at 4%, is it worth approx 3,000 a year?, or 18,000 over the extra six years? An appreciable amount it must be said.
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There's a ceiling of €3000 interest for an individual and €6000 for a couple after the first 7 years I think, making it worth a max of €1200 p.a.
 
Davob said:
Yes, I am for real. If you can tell me why I am different to someone who bought a house in jan 2004 then by all means go ahead.
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There is no difference. As easy as:

http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html#section3

With effect from the 1st May 2009 the number of tax years in respect of which mortgage interest relief may be claimed is 7 years for first time and non first time buyers.
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Which means: no mortgage interest relief byoned year seven. Which means in the year 2010, nothing for anyone who has taken out mortgage in 2004 or before that. In 2011, nothing for anyone taken out mortgage in 2005 etc.
 
Petal said:
well, if I could choose between paying my mortgage on the price my house would have been in 2003 and not getting anymore TRS or getting TRS until 2017 on the 2006 price I paid for my house, I know what I'd pick!!!
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I bought in Oct 2003 but had to sell in 2004. I bought again in 2006 and am now in negative equity. For TRS purposes though I am still regarded as being a First Time Buyer from 2003 so have lost the €165 per month but am far from paying a mortgage at 2003 level!!
 
newirishman said:
There is no difference. As easy as:

http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html#section3
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There is. The link you supplied above doesn’t provide for or even mention the recent changes.

newirishman said:
Which means: no mortgage interest relief byoned year seven. Which means in the year 2010, nothing for anyone who has taken out mortgage in 2004 or before that.
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If year 1 is 2004, year 7 is 2010 (Jan to Dec 2010) so even going by the information provided in your link, interest relief would apply until December 31st 2010.



newirishman said:
In 2011, nothing for anyone taken out mortgage in 2005 etc.
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If year 1 is 2005, year 7 is 2011 (Jan to Dec 2011) so, even going by the information provided in your link, interest relief would apply until Dec 31st 2011.



It was announced in December’s budget that people whose entitlement to relief is due to expire in 2010 or after, continue to qualify for relief at the applicable rate up until the end of 2017. If you took out your mortgage in 2004 your relief is due to expire at the end of 2010. If you took out your mortgage in 2003, it expired at the end of 2009.

So, the difference between taking out a mortgage in 2003 & taking it out in 2004 is an extra seven years mortgage interest relief!
 
Papercut said:
So, the difference between taking out a mortgage in 2003 & taking it out in 2004 is an extra seven years mortgage interest relief!
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Which, if you receive the full amount, is €2,000 per year, or €14,000 over 7 years!
 
Yes, I am for real. If you can tell me why I am different to someone who bought a house in jan 2004 then by all means go ahead.
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Very simply, the difference is you took out your mortgage in 2003. What part of that is not clear ?
 
elcato said:
Very simply, the difference is you took out your mortgage in 2003. What part of that is not clear ?
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I think it would be fair to say that Daithi has grasped that. It looks as if he, quite rightly is at a loss to understand the criteria or logic (if any) used to decide the cut-off date. I know that I certainly am, especially considering that the Minister mentioned in his speech that this change was to cater for those who now find themselves in negative equity.

The question raised is quite a reasonable & worthwhile one IMO: Was there a set formula, any due consideration, any firm or logical basis for the decision on the date, or was it just a matter of throwing some random dates into a hat or balls into a lotto drum & that 2004 was picked?
 
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