Mortgage Interest Relief when letting to Local Council

T

TRS30

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If I let a property to my local council on a Long Term lease, the council register with the PTRB.

Does this mean that I cannot then offset any mortgage interest against rental income?
 
Nope, you've complied, or more particularly you haven't failed to comply, with the Residential Tenancies Act.
 
T McGibney said:
Nope, you've complied, or more particularly you haven't failed to comply, with the Residential Tenancies Act.
Click to expand...

So once the property is registered with the PTRB, regardless of who registers it, then the obligation is met to allow mortgage interest to be offset?
 
You'd better make sure it is registered, for your own sake. I wouldn't trust anybody to do this for me. I'd definitely want a copy of the PRTB registration.
 
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TRS30 said:
So once the property is registered with the PTRB, regardless of who registers it, then the obligation is met to allow mortgage interest to be offset?
Click to expand...

This all assumes it definitely isn't your responsibility to register. If it's someone else's responsibility and they mess up, their problem. You haven't broken the Act so you're in the clear. But if it's your responsibility to register, it's your problem.
 

Is councils responsibility to register if LTL.

Bonte- good point, will ask Council for copy of registration for my files.

Thanks for the replies.
 
On that basis, my earlier advice stands.

Even if the Council haven't complied, you haven't broken the law, so Revenue can't deny you interest deduction.
 
The availability of the interest deduction is subject to compliance with the PRTB registration requirements. However, a dwelling let by or to a public authority (including a local authority) is specifically exempted from the registration requirement under the Residential Tenancies Act 2004.

In other words, if you are in compliance with the statutory registration requirement (because an exemption is applicable) then 75% of any relevant interest payments can very clearly be deducted in calculating your taxable rental income.
 
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Thanks for the clarification.

Will it not be 100% after the new regulations introduced last week?
 
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