Not entitled to Rent relief if in receipt of Mortgage Interest Relief?

[ivorystraws]

Hi,

I recently was updating my tax refund claims online but subsequently have received a balancing statement stating that I'm not entitled to rent relief if I'm in receipt of Mortgage Interest Relief? Was this always the case?

I co-own a house with my brother and that's my principle place of residence. However, I do rent, in Dublin. I've always received rent relief but now all rent relief will be clawed back by the revenue but I don't understand why?

Can anyone shed some light on this please?

 

[WindUp]

Is the rented accom sole or main residence?

 

[Berni]

Each relief only applies to your primary residence. You can't have two PPRs, so one lot of relief has to go.

 

[ivorystraws]

Is the rented accom sole or main residence?

The rented accommodation is where I spend the majority of my time as that's where my work is based. My house is where I get all my post and basically where I keep all my stuff and have always put that down on forms as my primary residence.

 

[ivorystraws]

Each relief only applies to your primary residence. You can't have two PPRs, so one lot of relief has to go.

OK, so if I'm in receipt of Mortgage Interest Relief, I can't get rent relief? How come this has only come to light now? I've always received rent relief and Mortgage relief at source.

 

[WindUp]

you cannot have both unfortunately - be grateful that they took away the rent relief and not the TRS!

 

[kennyb3]

OK, so if I'm in receipt of Mortgage Interest Relief, I can't get rent relief? How come this has only come to light now? I've always received rent relief and Mortgage relief at source.

It was being dealt with incorrectly. You are lucky it has only come to light now - although thats not to say they wont 'look back'.

 

[ivorystraws]

you cannot have both unfortunately - be grateful that they took away the rent relief and not the TRS!

Yea, it makes sense and seems fair. I wasn't aware that I couldn't have both since I've been receiving both since the house purchase in 2005.

 

[ivorystraws]

It was being dealt with incorrectly. You are lucky it has only come to light now - although thats not to say they wont 'look back'.

That have looked back ....to 2009 I think.

 

[kennyb3]

Well they can go further if they wish

 

[mandelbrot]

OK, so if I'm in receipt of Mortgage Interest Relief, I can't get rent relief? How come this has only come to light now? I've always received rent relief and Mortgage relief at source.

Maybe I'm reading you wrong but it appears you're inferring that this is Revenue's fault somehow...

The fact of the matter is that you claimed a tax credit you weren't entitled to; the onus is on you when making a claim to ensure you satisfy the relevant criteria. Generally if you apply for a credit, it will be granted to you on the assumption that you've correctly claimed.

Revenue will occasionally run projects based on a particular tax credit / allowance (such as rent tax credit, medical expenses, or one parent family credit), to ensure claims are valid.

In the case of mortgage TRS it wouldn't be apparent to the person (if any) processing your P21, because it's not coded into the PAYE system - the relevant area of the collector general's office deals directly with the financial institutions on that front.

 

[ivorystraws]

Maybe I'm reading you wrong but it appears you're inferring that this is Revenue's fault somehow...

The fact of the matter is that you claimed a tax credit you weren't entitled to; the onus is on you when making a claim to ensure you satisfy the relevant criteria. Generally if you apply for a credit, it will be granted to you on the assumption that you've correctly claimed.

Revenue will occasionally run projects based on a particular tax credit / allowance (such as rent tax credit, medical expenses, or one parent family credit), to ensure claims are valid.

In the case of mortgage TRS it wouldn't be apparent to the person (if any) processing your P21, because it's not coded into the PAYE system - the relevant area of the collector general's office deals directly with the financial institutions on that front.

Yes, you are reading it wrong, it was only a question to get clarity on the issue and I appreciate all responses. I never inferred it was the Revenue's fault. They have a job to do similar to everyone else, it's a small issue now clarified.