# New TRS regulations.



## time for tea (11 Feb 2014)

Hi guys, my first time posting although I do read through the forums for guidance at times. My query is, if anyone has any links to the new TRS rules recently implemented. I am very worried as to what this means for us. 
We came to an arrangement with our bank KBC to pay interest only from Nov 2013-September 2014, at which point they would perhaps consider recapitalising our arrears going forward. The arrangement as far as we were cocerned was based on TRS being reinstated. Revenue have emailed me saying they have reinstated our TRS but it may take 8 weeks, which we have no problem with, just happy it is there.
Anyway to cut a long story short KBC have informed me that if there are arrears on the account, TRS is not paid under the new rules. This is going to leave us with a shortfall of 350 euro or therabouts. 
Whereas, I am not naieve and appreciate the mortgage going forward long term is clearly unsustainable, having made an agrrement until September and seeing a shred of light after that, now we are all up in the air again.
Interest only is 1486 monthly and arrears approx 25000 euro.
Any advice would be greatly appreciated Thank you.


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## Matthew Moore (11 Feb 2014)

time for tea said:


> Hi guys, my first time posting although I do read through the forums for guidance at times. My query is, if anyone has any links to the new TRS rules recently implemented. I am very worried as to what this means for us.
> We came to an arrangement with our bank KBC to pay interest only from Nov 2013-September 2014, at which point they would perhaps consider recapitalising our arrears going forward. The arrangement as far as we were cocerned was based on TRS being reinstated. Revenue have emailed me saying they have reinstated our TRS but it may take 8 weeks, which we have no problem with, just happy it is there.
> Anyway to cut a long story short KBC have informed me that if there are arrears on the account, TRS is not paid under the new rules. This is going to leave us with a shortfall of 350 euro or therabouts.
> Whereas, I am not naieve and appreciate the mortgage going forward long term is clearly unsustainable, having made an agrrement until September and seeing a shred of light after that, now we are all up in the air again.
> ...



I'm not sure when the new regulations came in but we got back on TRS last September while in arrears. We had to make 3 consecutive monthly payments before being accepted back by revenue. At the time of being accepted back we were only making partial payments of our mortgage but paying enough interest to get full relief.


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## Brendan Burgess (11 Feb 2014)

You get tax relief on interest paid.

If you don't pay the interest, you don't get the tax relief. 



> We came to an arrangement with our bank KBC to pay interest only from Nov 2013-September 2014



Then you will get TRS on this interest. 

Brendan


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## time for tea (12 Feb 2014)

Thank you Pat2 and Brendan for getting back to me.
However I am deeply frustrated here. Revenue have not emailed me the "wording" of this new "policy" as promised yesterday, and I  am starting to wonder what is going on.
KBC are insisting that as there arrears on our account we are not due TRS.
The following is an excerpt from their website:

*4.   My accounts has historical arrears – how will the change in calculating TRS on an interest paid basis affect my account?*


Your entitlement to TRS in respect of payments made from November 2013 may be affected due to the arrears on your account;
Following the implementation of interest paid in January 2014,   Revenue have instructed lenders, including KBC, that TRS must be   calculated based on the amount of interest actually paid by the borrower   within the tax year.  This may include arrears paid within that tax   year relating to unpaid amounts accumulated on or after 1 January 2014*
Arrears relating to periods prior to 1 January 2014* will already   have been allowed TRS based on the interest charged method of   calculation.
Payment relating to arrears of interest accumulated prior to 1 January 2014* are not eligible for TRS.
Brendan, could I ask what you summise from this. I just can not take it in at all. Anyone else in the same situation, I would appreciate your input.
Thanks again.


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## time for tea (12 Feb 2014)

Effectively what KBC are saying is that the interest only we are paying now is old interest on arrears. I just can not understand if thats the case why I am the only one posting?


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## rameire (13 Feb 2014)

its not a new rule,
they are just implementing the rules that were already there.

it is supposed to be, you will receive trs for january once you pay your interest in november


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## time for tea (13 Feb 2014)

Thanks rameire. Would it be correct though not to receive any TRS at all going forward even though I am paying interest only? Brendan replied that if one pays the interest one gets the tax relief. How if I am paying currently can Bank tell me no TRS as there are arrears. I just can't get my head around it. I have family working in other banks and they tell me I should be getting it.
Kbc say they do not have any differing policy.


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## rameire (13 Feb 2014)

it would be fed into Revenue that there are historical arrears on an account.
but if the interest was paid in november, then the trs should be paid in january.
if the interest was not paid in november but decembers was paid, 
Trs would not pay in jan, and as it had stopped, the trs will probably not start again until march, but it would make up for the paid amount in december throughout the year.


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## time for tea (13 Feb 2014)

Thanks again rameire, I have been told by the bank that I should get November and Decembers TRS. However, they are saying going forward from here on in I will not get it because they are implementing regulations and accounts with arrears get no TRS from this month. 
So effectively, we will be paying 1486 interest only and getting no relief.


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## rameire (13 Feb 2014)

1890 46 36 26
is the revenue number

I think KBC have misunderstood the application of trs to an account with arrears.


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## time for tea (13 Feb 2014)

Thanks so much, I will ring them now.


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## time for tea (13 Feb 2014)

So finally feel like I'm getting somewhere here. Spoke to a delightfully helpful lady in the TRS section in Revenue. As some of you have stated, yes we are entitled to TRS as we am paying interest only on our account.
Unfortunately KBC are not doing it the same way as the other banks. Apparently they are in a nutshell using these funds to clear off historic arrears. Which leaves us with an enormous dilemna. Quite frankly, we were depending on TRS to pay interest only as we could probably only manage 1150 monthly at a huge stretch.
The plan had been to continue until September on interest only and then there were to be ??? discussions on recapitalising (not sure what it even means to be honest) going forward.
Now we don't know what to do. I have told KBC we can not maintain 1486 a month, we will just have to give them what we can in the region of 1000-1150 euro. They in response have told me to put this in writing.
Should I email them, from here on in?
Lastly, thanks for your help guys. Ultimately, we are never going to be able to clear this mortgage, but KBC had been so positive when I sat down with them in August 2013, now I am starting to get very anxious and concerned and do not know if we will need to start looking for a rental property soooner rather than later.


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## Mr Dog (13 Feb 2014)

Time for tea, slightly off topic but how did you manage to get through to revenue and the TRS helpline? I've been trying for two days, you're kept on hold for ages then it asks you if you want a call back. If you say you don't want a call back you are cut off and needless to say I didn't get a call back when I took that option !

 My query is I'm currently on an agreed payment break and my TRS has been stopped but I'm looking for confirmation it will be reinstated when I resume payments. I was not in arrears before the break nor will the bank have me classed as being in arrears after the payment break. Bank could not confirm if my TRS will resume......


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## time for tea (13 Feb 2014)

Hi Mr Dog, I had the same problem trying to get through to revenue and waiting for call back. So how I got through is where they prompt you to say your pps number, I didn't and after a few attempts of not getting it the automated voice put me through. From all my digging over the last few days, I can't see how you will have a problem getting your TRS reinstated. Revenue actually don't appear to be the issue, it's the bank, at least in my case.
Hope you get through ok tomorrow


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## time for tea (13 Feb 2014)

Just to say, my contact in Revenue today informed me they are getting a phenomenal amount of calls from concerned KBC customers all week.
Most people won't really notice the effects on their mortgage account until their March payment, so it will be interesting to see if others post here and how they fare out.


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## COLAKO (17 Feb 2014)

Folks, i had exactly the same issue with KBC. At enormous financial strain agreed to increase payment to full amount, represents around 59% of my salary. Prior to that i paid 1100, full amount was 1260. So i have been paying interest for well over a year but kbc told me they wont pay it because of historic arrears. I Spike TO Revenge 3 times and they said 3 times, it should be paid...kbc then blame the revenue. Its a nightmare...like you, i made the agreement based on 250.trs coming in but now i have no idea when i will get trs. Kbc seem to be saying never.
I am not correct in saying that i will be paying interest in arrears of interest anyway. So anybody who didnt pay interest before will pay more for it later. If they stop your trs, then you are punished on the double. I am complainjnh TO both Revenue and kbc now...its criminal what they are doing. The 30% is supposed TO assist struggling mortgage holders but they are trying now finaly send me over the edge with it.
Kbc didnt Even have the courtesy TO tell me it was being stopped.


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## COLAKO (17 Feb 2014)

Folks, i had exactly the same issue with KBC. At enormous financial strain agreed to increase payment to full amount, represents around 59% of my salary. Prior to that i paid 1100, full amount was 1260. So i have been paying interest for well over a year but kbc told me they wont pay it because of historic arrears. I Spike TO Revenge 3 times and they said 3 times, it should be paid...kbc then blame the revenue. Its a nightmare...like you, i made the agreement based on 250.trs coming in but now i have no idea when i will get trs. Kbc seem to be saying never.
I am not correct in saying that i will be paying interest in arrears of interest anyway. So anybody who didnt pay interest before will pay more for it later. If they stop your trs, then you are punished on the double. I am complainjnh TO both Revenue and kbc now...its criminal what they are doing. The 30% is supposed TO assist struggling mortgage holders but they are trying now finaly send me over the edge with it.
Kbc didnt Even have the courtesy TO tell me it was being stopped.


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