Yet another query re:mortgage interest relief

F

firebirder

Guest
I'm trying to wade my way through my taxation situation as I plan to rent out my apartment. I came across the following statement on the Revenue website and was wondering if anyone can explain what it means (I've changed the text in question colour to red). I'm recently divorced and maybe this is something I should be aware of???
Many thanks in advance for any advice

"What is the position with regard to interest paid on borrowings?

Certain restrictions were introduced on the deductibility of interest on borrowed money used on or after 3/4/1998, in the construction, purchase, or repair of rented residential premises in the State, or 7/5/1998 in the case of foreign residential premises. However, the relief for interest on borrowed money was restored for such interest accruing on or after 1 January 2002. There were some transitional arrangements in place in the interim period.
Relief is disallowed as respects interest accruing on or after 6 February 2003 where the let premises was purchased from the spouse of the person chargeable in respect of the rental income. However, the disallowance of interest relief does not apply in the case of legally separated or divorced persons. "
 
Is it the case that you are planning on renting out the apartment to a third party?
The text you are referring to above applies to a specific circumstance (in which interest is not disallowed for divorced persons in any case) so you probably have nothing to worry about.
 
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