Mortgage Interest Relief

[ski]

can I get some advice on the following situation - I have an apartment for almost 5 years, bought alone as a FTB - therefore no stamp etc
I recently purchased a house with my partner which I won't be living in until my 5 years are up on the apartment to avoid stamp duty claw back etc I am getting the €67ish euro a month tax relief - how does tax relief work with a couple - do we both get the €67 / I assume when i move in to house I won't be able to claim the tax relief on the apartment

 

[bacchus]

how does tax relief work with a couple - do we both get the €67

no, still €67ish....
Your assumption is correct. You can only get the Mortgage TRS on PPR.

I recently purchased a house with my partner which I won't be living in until my 5 years are up

Did you pay SD at investor rate on the new property as you are not owner-occupier?

 

[ski]

yes we paid 7and half% on a 385K house so I assume we did??

 

[ClubMan]

no, still €67ish....

This is incorrect as far as I know. All joint buyers/mortgagee owner occupiers of a PPR receive mortgage interest tax relief of €66.67 (FTB in first 7 years of mortgage) or €42.33 (others) each. It's a moot point here though since at the moment it's not a PPR.

 

[Art]

Ski,

The situation with regard to stamp duty clawback did not come into effect until 1st of January 2002. Any houses purchased before this will not be subject to a stamp duty clawback if rented out

 

[ClubMan]

Are you sure about that Art? I never heard that before.

 

[ski]

god i never heard that before?? i am trying to do everything correctly & obviously not leave myself open to claw back so struggling with two mortgages for 4 months until the 5 years up......but if its only post 2002 i should be able to it all out straight away.......

 

[Macer]

For people in the same/similar position as Ski, you might be interested in the following.
If Ski was preparing to marry her Partner she could sell the property in her name to him before they get married. The property would then be his to rent and there would be no issue in relation to stamp duty clawback. Careful however as this will give rise to stamp duty on the sale, but if the contract is stamped after the marriage there is no stamp duty between spouses. This occasion could also be used to remortgage your original property thus maximising the amount of mortgage interest relief one could set off against the rental income from the original property and use the money generated in the remortgage to finance the new house.