Owner occupier tax relief December 2006 deadline

K

k_doll

Guest
Hi, I am in the process of buying a house that qualifies for owner occupier tax relief under the rural renewal scheme. The snags have been completed an I am doing a final inspection today. Do I need to close by the end of the year to get the full relief? And if I do can I claim relief for 2006?

Thanks

K
 
Well I presume that if you don't close before the end of 2006 then you don't get any relief in respect of 2006! Not sure how it works if you do close before 2006 (e.g. a full year's worth of relief or just pro-rated for the period of 2006 that you owned the property). Your solicitor should be able to comment I presume?
 
To clarify, the deadline for full Section 23/owner occupier tax relief is 31 December 2006 and after this the tax relief is being phased out over an 18-month period, up to 31 July 2008, but at a reduced level of relief.

So do I need to close by the end of the year to recieve full level of relief, or is it enough that the building is complete by the end of the year? And what is the reduced rate that will apply to properties that close in January?
 
Never ever trust a solicitor (or accountant, for that matter) without the tax-exams !

Solicitors are not versed in tax.
 
It was my understanding that the reduction is only for the expenditure incurred rather than closing date. Reduction set for 2007 onwards applies to the actual expenditure in the appropriate years.
 
Thanks for all your replies. It now looks like I'll be able to close this week anyway so it shouldn't matter.

K
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aetius said:
Never ever trust a solicitor (or accountant, for that matter) without the tax-exams !

Solicitors are not versed in tax.
Click to expand...

I done the tax exams

And can confirm that you will need to be both the owner and occupier before 31 December 2006 in order to claim tax relief in 2006
 
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