TRS query

[Tickaboo]

Hi,

Hopefully someone on here can help me with this.

A number of years ago I took out a mortgage on which the bank arranged the Tax Relief to be taken at source. The mortgage was to cover buying of a site, demolition of old property and a new build. That all takes time, a due to a variety of circumstances, I have not been in a position to ever actually live in the house and it currently lies empty and unfurnished.

So it has never been my Primary Place of Residence but I have been in receipt of TRS since drawing down the mortgage.

Recently I had to query something with the Revenue and the topic of rent relief came up. I had not been in receipt of Rent Relief since taking out the mortgage even though I have been and continue to live in rented accomodation.

Revenue have now decided that my rental address is my PPR and that I should not be getting TRS but rather rental relief. They are also suggesting that I would have to repay all of TRS received to date and claim rent relief for the intervening years instead.

I'm afraid this might be quite a significant sum and one which I may not be in a position to pay.

Is this correct? Would I have to do such a repayment? Can I not continue to waive rental relief as I have been doing?
Should I blame the bank as they sorted out the TRS knowing full well that is was for a new build and as such would not be my PPR for some time.

Lengthy post, but I'm confused and concerned!
Very grateful for any advice or suggestions.

Thanks

 

[mathepac]

... A number of years ago I took out a mortgage on which the bank arranged the Tax Relief to be taken at source. ...

AFAIK the only way to get TRS is to fill out hard-copy form TRS1P, or apply online; no-one can do this on your behalf. See here - http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html#section8

The bank / broker / financial institution may have facilitated the process, but at various stages you supplied the details (PPSN, signature, etc.)

... Is this correct? Would I have to do such a repayment? Can I not continue to waive rental relief as I have been doing? ...

It sounds correct to me and although I think you may choose to waive the rent relief, you must still repay the TRS you received invalidly.

... Should I blame the bank as they sorted out the TRS knowing full well that is was for a new build and as such would not be my PPR for some time. ...

Every tax payer is responsible for his / her own tax matters, even if intermediaries / advisors are used. You may choose to initiate proceedings against an advisor, but that is a different matter to settling debts with Revenue unfortunately.

 

[Tickaboo]

Thanks for the reply. In my defence, I was a lot younger than I am now at the time!