How long does TRS on PPR last?

S

silvamuppet

Registered User
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I've checked revenue.ie and done a forum search here for this information and can't seem to find it so apologies if I'm asking a well worn question!

We will be in our PPM for 6 years this august and have been getting our TRS. (the 16K max with us as a married couple). I know I have read somewhere that there is a time limit on this (7 years I think??) rate of relief we are receiving (it is our first and only property thus far).

I was wondering , do you still get TRS but at a reduced rate after this period or does the TRS stop completly? Am guessing a reduced rate , wondering what that is?

Thanks
 
PPM? You mean PPR?

TRS lasts as long as you are paying qualifying interest on the mortgage. You get FTB rates of relief for 7 years and then get the non FTB relief. See [broken link removed].
 
Thanks ClubMan. Yes , meant PPR.

Saw that link on the revenue site alright. Wasn't sure if the 'others' section meant people after the period of 7 years or not (as opposed to investors or something like that. if indeed they are even entitled to TRS). Also didn't even see that note about the relief being available for 7 years.....must be going blind.

Anyway, thanks for clearing that up. I come off a fixed rate at the end of the year and plan on taking the term of mortgage down then. Need to be mindful of the TRS though as late next year we hit the 7 year mark

Thanks.
 
silvamuppet said:
Wasn't sure if the 'others' section meant people after the period of 7 years or not (as opposed to investors or something like that. if indeed they are even entitled to TRS).
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"Others" means non FTB owner occupiers or FTBs beyond the initial 7 year preferential period. Non owner occupiers are not entitled to claim owner occupier mortgage interest relief. Investors can offset (all) interest against rental income.
Anyway, thanks for clearing that up. I come off a fixed rate at the end of the year and plan on taking the term of mortgage down then. Need to be mindful of the TRS though as late next year we hit the 7 year mark
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I wouldn't worry about mortgage interest relief or let it unduly influence decisions about reducing the mortgage amount/term etc. After all even with TRS each €1 in interest is still costing you €0.80 so keeping the interest bill higher than it could be just to avail of tax relief doesn't make much sense.
 

Agreed. My worry is more about what the shock to the system will be with us coming off our fixed rate (3.75%) along with us just about to come out of the 7 year TRS FTB period. Preference is to reduce the term as much as possible as soon as possible.....From what I can see the TRS thing wont effect it too much anyway. As is we don't pay enough interest (thankfully) to use up our full married ceiling of 16K. The drop to 6K from what we're currently on shouldn't be hugely noticable. I hope anyway
 
I've done a search but cant seem to find an answer to this one. I wonder if someone knows.

Took out Mortgage in Nov 2000 which I would assume would give me FTB status on TRS until Nov 2007. I recently got a letter from my bank stating that my repayments are increasing due to recent changes in TRS. I rang the bank and it looks like I am only receiving TRS for €6K (maximum).

So the question. Is the seven years actually seven years or is it "seven years or part thereof"? I.E. sould I not be entitled to TRS as a FTB until Nov 2007?

A bit of a head scratcher I know but I'd appreciate any advice.
 
I thought I heard somewhere before that you no matter what month of the year you draw down in, you reap the full benefits of a years TRS. So when you drew down back in November 2000, you would have got relief on the 10 months previous.
 
Ah, that would make sense I suppose. I cant remember tbh but that may have been the case. At the time there was no TRS so tax credits were issued instead so I could check my notice of determination for 2000/2001.

Thanks
 
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