Tax relief on mortgage top-up

L

Lin03

Registered User
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Hi,

I have an investment mortgage with Irish Nationwide which I topped up in order to have the deposit to purchase my PPR. I applied for tax relief on my PPR mortgage and assumed that I would also be entitled to tax relief on the top-up portion of my investment mortage.
However, revenue just rang me and told me that it wasn't possible because there are 2 different lenders involved. I suggested that if I moved my investment mortage to BoSc. then I would be entitled to relief on the top-up and she said yes! Surely that doesn't make sense?

Thanks.
 
If you're taking about mortgage interest relief, it makes perfect sense to me. No one gets mortgage interest relief on the deposit for their PPR. People who borrow the deposit from the Credit Union, for example, can't claim interest relief on the credit union loan.
 
http://www.revenue.ie/publications/legisltn/fa01_s1-32.pdf
Notes for Guidance 2001 Finance Act

Qualifying loans will continue to be ones which are used solely for the purchase, repair, development or improvement of a qualifying residence but such loans within TRS will be those which are secured on the residence, that is, mortgage loans. Interest on qualifying loans which are not mortgage loans will continue to attract tax relief but this will be given through the tax system and not through TRS.


If you have a credit union loan, bank loan for the purchase, repair, etc of your home PPR you can claim interest relief. If I had a credit union loan for my extension I would be sending in my P60 at the end of the year with my statement showing the interest paid and expecting my 20% rebate.

I can see no difference in this case. At the end of the year send in your cert like in the good old days.




 
Interesting. I didn't know that davidoco. The limits are so low in any case that if you bought within the last couple of years, it's unlikely to be of benefit.
 
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