Changes to TRS-backdated for 7 years?

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CCOVICH

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The following is a quote from a Department of Finance spokesperson taken from www.ireland.com

A Department of Finance spokesman told ireland.com that the Government also intends to raise the ceiling on mortgage interest relief for first-time buyers in Budget 2008.
The relief will be raised from €8,000 to €10,000 for single people and from €16,000 to €20,000 for couple back-dated for seven years as pledged in the programme for government, he said.
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Does this mean that mortgage holders will get a refund from Revenue going back a maximum of 7 years?

E.g say I took out a mortgage 3 years ago and availed of TRS as follows:

Year 1 €4,000 @ 20% = €800
Year 2 €4,000 @ 20% = €800
Year 3 €8,000 @ 20% = €1,600

Does the change mean that I would be entitled to €10,000 @ 20% for each of the last 3 years (total of €6,000 for 3 years), and so be due a refund of €2,800?

Or have I mis-interpreted the quote above?
 
Saw that as well and wasn't sure. I thought I read somewhere else that the new interest relief would only start from the next tax year. Happy days if it is backdated!
 
I believe that it would be taken off your mortgage payments, i.e. at source, but I'm still a little skeptical of how this will actually operate in practice.

If it will not be formalised until Budget 2008 (or Finance Act 2008), then we could be waiting for a while.
 
The Fianna Fail manifest says:

"We will also implement major changes in mortgage
interest relief for first-time buyers and those who bought a house in the past seven years. We will increase in Budget 2008 the ceiling
on mortgage interest relief for first-time buyers and those who bought a house in the past seven years, from €8,000 to €10,000 for
single people and from €16,000 to €20,000 for couples or widowed persons. As income tax rates are reduced, we will keep the rate of
mortgage interest relief at 20% for all home owners."

Later on it says this will take effect 1/Jan/2008.
I read that as saying the allowance will be increased but there'll be no back-dating.

Link here [broken link removed]
 
Yes-I agree with that-the reports of recent days certainly suggest otherwise-but that could be just misinterpretation.
 
CCOVICH said:
Yes-I agree with that-the reports of recent days certainly suggest otherwise-but that could be just misinterpretation.
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I've read it as saying there will be backdating. The Indo business section made a reference to this last week and mentioned how a lot of FTB's would be getting large lump sums into their bank accounts come Budget 08.
I'll try and find the article.
 
CCOVICH said:
I am still skeptical.
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As am I - I think the first statement from the Finance spokesman was badly put, and the Indo hopped on it without checking further. I certainly wouldn't budget for a backdated payment!
 
my fixed interest rate ends this month and is going to go from 3.74 to around 5.3 if I fix again, will the trs increase to compensate this automatically?
 
Yes-remember that no matter how much interest you pay, the relief is capped at the relevant limits depending on whether you are claiming on your own or jointly (€8,000@20% or €16,000@20%).
 
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could'nt find it in the Indo but their search is crap anyway. Will have a look at each days paper when i get a chance and see what I can find.
But here's some excerpts from articles in the Irish Times I found in a search today:

Stamp duty changes before Cabinet
Stephen Collins
The programme for government also includes the Fianna Fáil pledge to raise the ceiling on mortgage interest relief for first-time buyers from €8,000 to €10,000 for single people and from €16,000 to €20,000 for couples.
The new ceiling will apply to all first-time buyers who have purchased a house over the past seven years and it means that they will be able to claim backdated tax relief for the period.
20/06


Bertie Ahern's tangled finances derail Fianna Fáil manifesto launch
Stephen Collins
There was also a commitment to increase mortgage interest relief for first-time buyers to €20,000 for a married couple and half that for a single person. The real surprise, though, was that this concession has been backdated for seven years, which means that anybody who bought a house over that period will stand to net a tidy lump sum if Fianna Fáil returns to power. The concession is clearly designed to appeal to a wide swathe of people who have bought a house in recent years. It is clever in that it promises an incentive for people who have already been in the property market, by comparison with the Fine Gael and Labour plan which will appeal to people who might buy or move house at some time in the future.
4/05

So it looks like Stephen Collins reads it like I did. And he was'nt corrected on this between 04/05 and 20/06 by anyone. I emailed the Dept Of Finance and Fianna Fáil today, so hopefully will hear back on it soon
 
I think youse are all guilty of hearing what you want to hear. TRS is a relief which is applicable for 7 years. Stephan Collins is paraphrasing the FF election pledge. As outlined above the exact wording was "We will increase in Budget 2008 the ceiling
on mortgage interest relief for first-time buyers and those who bought a house in the past seven years, from €8,000 to €10,000 for
single people and from €16,000 to €20,000 for couples or widowed persons."

This was also the wording used when TRS was increased in the last budget. People who were still within the first 7 years of their mortgage would benefit FOR THE REMAINING period of that 7 years. Unless someone here received a cheque in the post after the last budget WHEN TRS WAS INCREASED IN THE SAME WAY then I wouldn't be expecting one now. Anyone who is is deluding themselves and setting themselves up for a fall.
 
Howitzer said:
I think youse are all guilty of hearing what you want to hear. TRS is a relief which is applicable for 7 years. Stephan Collins is paraphrasing the FF election pledge. As outlined above the exact wording was "We will increase in Budget 2008 the ceiling
on mortgage interest relief for first-time buyers and those who bought a house in the past seven years, from €8,000 to €10,000 for
single people and from €16,000 to €20,000 for couples or widowed persons."

This was also the wording used when TRS was increased in the last budget. People who were still within the first 7 years of their mortgage would benefit FOR THE REMAINING period of that 7 years. Unless someone here received a cheque in the post after the last budget WHEN TRS WAS INCREASED IN THE SAME WAY then I wouldn't be expecting one now. Anyone who is is deluding themselves and setting themselves up for a fall.
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you could be right, but Collins does mention a 'tidy lump sum' so maybe he is believing what he wants to also
 
I would expect that there won't be money in the bank or cheques issued as I found out that most lenders simply apply these TRS arrears against the principle.
 
Delboy said:
you could be right, but Collins does mention a 'tidy lump sum' so maybe he is believing what he wants to also
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I suspect he's just being contrarian to stir the pot, kinda like the backbench heckling you hear in the Dail. Not atall constructive since it just fills peoples heads with false ideas and ultimately leads to disappointment and cynicism. "Dem Fianna Fallers promised us dis da last time and dey they didn't keep der word. Damn politicians."
 
bond-007 said:
I would expect that there won't be money in the bank or cheques issued as I found out that most lenders simply apply these TRS arrears against the principle.
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Indeed-and I expect that this would be the case in this instance as well.

Ultimately, I think it will be November (or possibly later-when the Finance Bill goes through) when we will know for sure.
 
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