# Tax relief on Credit Union loan



## Galway98 (19 Oct 2006)

Is it possible to claim tax back against interest paid on a Credit Union loan??


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## Howitzer (19 Oct 2006)

In what scenario?


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## ClubMan (19 Oct 2006)

Depends on what the money is used for. For example, if it is used to purchase or renovate your _PPR _then the interest should qualify for tax relief. Not sure if the _CUs _facilitate granting of this relief at source though. If it is used to purchase or renovate an investment property then the interest can be set against rental income as an allowable expense.


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## Galway98 (19 Oct 2006)

Thanks for that, how many years back can I claim for?


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## ClubMan (19 Oct 2006)

What is the loan being used for? Not sure if the 4 year cutoff point for _PAYE_ tax reclaims applies in this case too.


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## Galway98 (19 Oct 2006)

The loan was used as a mortgage deposit


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## MsGinger (19 Oct 2006)

I'm not sure about TRS, but my credit union gives me an interest rebate on interest paid on loans each year, I think it's approximately 27% of interest paid...


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## Galway98 (19 Oct 2006)

How does your credit union give you the rebate?? Do they claim it from the Revenue??


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## ClubMan (19 Oct 2006)

The _CU _interest rebate is nothing to do with tax relief. It's just a discount on the normal interest rates that some _CUs _give at the end of the year. *Any *loan used to purchase or renovate a _PPR _qualifies for tax relief on the interest up to the usual _TRS _limits. I just don't know if the _CU _can do this at source.


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## asdfg (19 Oct 2006)

Any interest paid that is not covered by TRS can be recovered directly from Revenue subject to the max allowed. Just contact Revenue and they will increase your tax credits accordingly or wait until the end of the year and make sure it is included on your balancing statement.


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