This query kind of falls between two sections (Taxation and Mortgages & Home Buying) but anyway.
My query is whether Mortgage Interest Relief (MIR) is related to or independent of income tax. Is the 20% of the Mortgage Interest you pay really just a tax credit or does it stand on its own independent of the tax credit system?
An example - if you were not earning a salary for a year but still paying off a mortgage would you be entitled to MIR? Or would your MIR essentially be a tax credit that would go to waste because of the fact that you don’t have any tax to offset it against?
I know that with TRS the MIR does not appear as a tax credit but is that fundamentally the way it works?
I’ve looked on the revenue site and here and while there’s a lot of info about eligibility and TRS I’m not 100% clear on the underlying workings of MIR.
My query is whether Mortgage Interest Relief (MIR) is related to or independent of income tax. Is the 20% of the Mortgage Interest you pay really just a tax credit or does it stand on its own independent of the tax credit system?
An example - if you were not earning a salary for a year but still paying off a mortgage would you be entitled to MIR? Or would your MIR essentially be a tax credit that would go to waste because of the fact that you don’t have any tax to offset it against?
I know that with TRS the MIR does not appear as a tax credit but is that fundamentally the way it works?
I’ve looked on the revenue site and here and while there’s a lot of info about eligibility and TRS I’m not 100% clear on the underlying workings of MIR.