TRS - Is it 7 years

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bluetoff

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Does the TRS last for 7 whole years,eg:if you buy a house in August 2003 you will receive TRS until August 2010 or is it 7 years that no matter what month you buy the house of any given year that will count as one whole year. All help appreciated.
 
Thanks, so if the house had of been bought in January 2003 would it still be received until January 2010
 
If you bought your house in August 2003, 2003 was Year 1 & 2009 was Year 7, so your mortgage interest relief would have ran out on 31st December 2009.

If you had bought in 2004, 2010 would have been Year 7 & you would have qualified for the relief extension until 2017 that was announced in last month's budget.

Usually, mortgage interest relief begins in the year that you took out your mortgage, but people who drew their mortgage down in December but did not start making their repayments until January seem to be able to use the January year as Year1.
 
bluetoff said:
Thanks, so if the house had of been bought in January 2003 would it still be received until January 2010
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Yes.


Friend of mine bought his house in November 2003, his trs has finished now after 6 years and 1 month.
 
I bought my home in Aug 08. Turns out I've just discovered that
Aug-Dec 08 = Yr1
Jan-Dec 09 = Yr2
Jan-Dec 09 = Yr3
So despite the fact that I don't actually enter my third year of mortgage payment until Sep 10, Revenue in fact already view me as being in my third year as of this month. It means instead of getting the first 2yrs at 25% I in fact will only get 1yr 5mths.

When I asked Revenue about it over the phone I was told that this was in fact the case but that it wasn't widely known "for obvious reasons". In fact I was told that to get full benefit from TRS I really should have organised it so that I was only making my first mortgage repayment in Jan/Feb/Mar and that after that it wasn't really worthwhile!!! This is just incredible stuff and it seems that only a handful of people are aware of this. I've yet to speak to someone who has a mortgage who was aware of this little fact. So sneaky and totally disgraceful that TRS is not in fact for the first 7yrs as it is claimed to be. I feel incredibly sorry fo anyone who drew down in Dec and effectively looses 11mths of Yr1
 
Damn it, I always thought it was a full 7 years. Our started in October, so that's 9 month wasted.
 
cf29 said:
So sneaky and totally disgraceful that TRS is not in fact for the first 7yrs as it is claimed to be.
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well not exactly. In year one, the full benefit of TRS is available to you. However, if you draw down late in the year, you will probably not pay sufficient interest to receive all of the tax relief.

I was aware of this, from AAM actually, when I got my first mortgage and got the full 12 months relief divided into 9 months (1st payment in April) so my actual monthly repayment was lower in year one (max relief/9) than year two (max relief/12)

I also feel sorry for anyone who doesnt know this, especially if they draw down in Nov/Dec, but I cant see revenue changing this to a 7x12months payment
 
stephnyc said:
I also feel sorry for anyone who doesnt know this, especially if they draw down in Nov/Dec, but I cant see revenue changing this to a 7x12months payment
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Yes - was annoyed to find this out after the fact. To make matters worse, I drew down a small portion of mortgage initially for a stage payment 3/4 of a year before the house was completed.
 
Papercut said:
If you had bought in 2004, 2010 would have been Year 7 & you would have qualified for the relief extension until 2017 that was announced in last month's budget.
.
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Im slightely confused... I bought my house in 2005 when will my TRS end or am I entitled in any way to this extension?
 
Anyone whose entitlement to relief was due to expire in 2010 or after will continue to qualify for relief at the applicable rate up until the end of 2017. Therefore your relief should continue until the end of 2017.

The Revenue website hasn't been updated to explain these changes - I emailed them to ask why & they replied stating that they would be doing so after the Finance Bill has been published.

Luckily, Citizens Information is on the ball & have explained things here [broken link removed]
 
Papercut said:
Anyone whose entitlement to relief was due to expire in 2010 or after will continue to qualify for relief at the applicable rate up until the end of 2017. Therefore your relief should continue until the end of 2017.

The Revenue website hasn't been updated to explain these changes - I emailed them to ask why & they replied stating that they would be doing so after the Finance Bill has been published.

Luckily, Citizens Information is on the ball & have explained things here [broken link removed]
Click to expand...
I can't believe I didn't hear about this earlier! This is fabulous news!
 
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