# Mortgage, Owner Occupier & Section 23 tax relief?



## leonvq (1 Oct 2008)

Some quick questions re my impending mortgage application:


I am self employed, will I qualify for mortgage interest relief?
I own a rental property in dublin, will I qualify for tax relief if I buy a house under section 23 and live in it in addition to the above relief?
Is Section 23 the same as Owner Occupier Relief?


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## ClubMan (1 Oct 2008)

leonvq said:


> I am self employed, will I qualify for mortgage interest relief?


Owner occupier mortgage interest relief is not restricted to _PAYE _workers if that's what you mean? It is available to all owner occupier mortgage holders.


> I own a rental property in dublin, will I qualify for tax relief if I buy a house under section 23 and live in it in addition to the above relief?


You mean owner occupier mortgage interest tax relief or something else?


> Is Section 23 the same as Owner Occupier Relief?


What sort of owner occupier relief are you referring to?


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## leonvq (1 Oct 2008)

I'll be buying a house in Leitrim which qualifies for section 23 tax relief, otherwise known as 'Rural renewal relief'. 

Apparently I only qualify for section 23 if I buy the house in Leitrim and rent it out, but I already rent a house out in dublin so will I still qualify for the extra tax relief as well as the normal owner occupier mortgage interest relief?


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## ClubMan (1 Oct 2008)

I don't understand your query. Your questions are not that clear. If you own two properties and both are rented out then obviously you do not qualify for *owner occupier* mortgage tax relief on either.


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## leonvq (1 Oct 2008)

Sorry, I can't explain it any better, have you ever heard of Section 23? Is this site Uk or Ireland based, I thought it was Ireland based?


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## ClubMan (1 Oct 2008)

It's an _Irish _site. From your posts you seem to be aiming to have two rental properties in which case owner occupier mortgage interest relief is totally irrelevant since it's for owner occupiers obviously. I have heard of _Section 23_. I believe that www.revenue.ie has some information about it. Also a good accountant or tax advisor should be able to help you understand how such things work.


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## leonvq (1 Oct 2008)

No, I only have one rental property in Dublin, I want to buy another house in Leitrim to live in so wanted to know if Section 23 applied to my rental property in Dublin.

It costs to use an accountant and I've downloaded 50 page pdf's from revenue.ie that I plan to get stuck into when I have time, thought posting a quick question here would be easier...silly me!


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## ClubMan (1 Oct 2008)

leonvq said:


> wanted to know if Section 23 applied to my rental property in Dublin.


Surely you already know whether or not it's a section 23 property if you already own it!?! If you don't then you really do need to get professional advice. 


> It costs to use an accountant and I've downloaded 50 page pdf's from revenue.ie that I plan to get stuck into when I have time, thought posting a quick question here would be easier...silly me!


Did you read the site disclaimer? Regardless of the information you get here about taxation issues you still need to get independent, professional advice especially on more complex tax issues such as those pertaining to professional property investment.


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## monos (2 Oct 2008)

I think what the OP is asking is whether he could apply his section 23 relief which is available on his Leitrim property to his Dublin property (on which section 23 relief is not available), as he wants to live in the Leitrim one and rent Dublin one. I would imagine the answer is no, section 23 relief applies to the actual property as opposed to the person and is aimed at investors not owner occupiers. Correct me if I'm wrong anyone.


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## leonvq (2 Oct 2008)

Yeh, thats what I meant Monos, thanks for actually thinking about my comments and offering advice and opinion as one does on a forum.


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## ClubMan (2 Oct 2008)

leonvq said:


> Yeh, thats what I meant Monos, thanks for actually thinking about my comments and offering advice and opinion as one does on a forum.


If you posted more clearly then it would make it easier for people to answer your queries.


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## kINGKONG (2 Oct 2008)

Be aware that if you are claiming Mortgage interest relief as an owner occupier on a rented property that you are not living in this is illegal and heavy penalities will be imposed by Revenue.


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## usual (2 Oct 2008)

As far as i am aware,section 23 covers rent recieved in any property in ireland.I cant see a problem with living in Leitrim property and using relief for Dublin one,I use relief from a section 23 in wexford to offset rent in a property in Cork.I would think you are still entitled to owner/occupier relief once you genuinely are an owner/occupier.


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## ClubMan (2 Oct 2008)

usual said:


> I would think you are still entitled to owner/occupier relief once you genuinely are an owner/occupier.


Yes - as I said in my first post.


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## moondance (2 Oct 2008)

I own a property in a section 23 area and you need to realise that Section 23 Tax Relief is different to Rural Renewal Scheme and I am entitled to both but you need to check with seller/estate agent as to whether both apply to the property you are interested in. If you are going to live in the Leitrim place then you'll be entitled to owner occupier section 23 (which is relief on your PAYE tax on wages regardless of whether you're self employed or not) and rural renewal which for me comes as a cheque once a year but can also be taken off PAYE tax on your wages. I'm not sure how the mortgage interest relief (TRS?) will work for you if you already have another property? Hope that helps!


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## ClubMan (2 Oct 2008)

moondance said:


> I'm not sure how the mortgage interest relief (TRS?) will work for you if you already have another property?


It's irrelevant. As long as you are an owner occupier mortgage holder you can get owner occupier mortgage interest tax relief on the _PPR _mortgage.


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## johnnygman (13 Oct 2008)

Hi,

I was wondering if anyone knows the answer to this.

I am eligible for rural renewal scheme tax relief and have been the owner occupier since i purchased the property in 2006, 
Due to the builder messing me about ive only just recieved the certificate of costs  to go ahead and apply to the revenue for the relief,
*My question is will the relief be backdated to the point of purchase in 2006?* (this is also the date i became owner occupier..)
i am a PAYE taxpayer spoke to a girl in revenue in Sligo and she didnt know...


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## johnnygman (13 Oct 2008)

Freaky,

Havent heard from my solicitor  since bought the house in 2006, 5 mins ago got a call, and she advised me Builders cert of costs just recieved and she is applying to DOE on my behalf, she also advsied me that the relief is backdated!!

Seriously this is no joke, and a happy outcome, crazy coincidence that i looked into it today online for first time and then she calls out of the blue 
Maybe its goin to be a good week for me for a change


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## xwave7000 (21 Jan 2009)

Im a new member......Quick question. I own a section 23 property. Since last year i rent 2 bedrooms out and live in the third bedroom myself. I have always been an owner occupier and i claim the rural renewal tax relief on my wages every week (i think its worth about €30.00 a week as a tax credit). Am i allowed claim both this and the rent a room scheme??? Should i fill out a form 12???


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