Switching TRS ...

S

Salem

Registered User
Messages
73
Hi guys,
Here's our situation ...
We have a house for 6 years which has been our PPR up until 1st Sept and we are now renting out ... There is 100k left on mortgage which we have been claiming TRS on ...
We are building a new house and have been approved for 300k with new lender ... We are about to draw down first stage payment ...

Do we cancel TRS on first house and claim a new one on new build as it will be our PPR by next FEB ?
How would TRS be worked out on stage payments i.e. will the bank make the adjustments up until the full 300k is drawn down ?

Cant find any details on websites for the above ...
Thanks in advance,
 
Salem said:
We are building a new house and have been approved for 300k with new lender ... We are about to draw down first stage payment ...

Do we cancel TRS on first house and claim a new one on new build as it will be our PPR by next FEB ?
Click to expand...
Yes - you should not be claiming TRS on the old mortgage since it ceased to be your PPR.
How would TRS be worked out on stage payments i.e. will the bank make the adjustments up until the full 300k is drawn down ?
Click to expand...
I presume so since it is granted at source. When you draw down further funds the relief will be extended if necessary. Just contact Revenue to cancel the TRS on your investment property loan and to obtain it on the new loan. Update them again when you draw down more funds.
 
Rather than start up a new thread I'll just ask here...

We bought a new house in early July. Applied for tax relief a few weeks beforehand as I knew it could take time. We got a credit to our bank A/C for TRS of approx. €800. I didn't know what it was for and assumed something written would come in the post. It didn't. I thought the TRS could be a lump payment for the remainder of 2006 but that didnt add up correctly and since then we have been recieving it monthly as we pay the mortgage. Any ideas what the €800 is?
 
Exactly the same thing happened to me...about €800 deposited in the first month and then €133 every month since (only 3 months total so far). Very stange altogether!
 
€800 / €133.33 = 6. My guess is that €800 is 6 months of backdated TRS for a mortgage starting in July. As far as I know even if your mortgage starts on December 31st you qualify for a full year's worth of TRS. Of course when in doubt about tax issues it's better to double check with Revenue directly in order to avoid your tax situation getting out of date and either paying too much tax.
 
€800 is hardly the first time buyers grant but its better than a kick up the bum all the same!
 
You must log in or register to reply here.
Back
Top