Re: Bght hse 2001 sold 2005: unused portion (3 years) of FTB status for mort int reli
This suggests otherwise (See part in bold below).
My interpretation is that:
2005 is year 5,
2006 - 2008 count as unused years
2009 & 2010 will be years 6 & 7
Assuming you are a couple you will get relief of 15% of your interest bill up to a max of €3000 per annum in 2009 & 2010 falling to a max of €900 per annum thereafter
[8.3.4] Mortgage Interest Relief - First Time Buyers
Last Updated January 2008
Extract from Tax Briefing, Issue 15 (July 1994)
"First time buyers" are entitled (for a period of seven years) to more favourable tax relief than is generally available on the payment of mortgage relief. A "first-time buyer" is an individual not previously entitled to relief in respect of interest paid on a loan used for the purchase, repair, development or improvement of a sole or main residence (a qualifying residence).
Sale and purchase within first seven years
Where, within the first seven years, a person buys a "qualifying residence", sells it and buys another qualifying residence he/she will qualify as a first-time buyer in relation to the second qualifying residence - in respect of the remainder of the seven year period, which commenced on taking out the loan for the first qualifying residence.
Interval between sale and purchase
The "seven-year" period refers to the first seven years in which interest is paid on a qualifying residence. In cases where a gap of (say) two years occurs between the first residence being sold and the second residence being acquired, these two years are not counted in the seven-year period, so that in such cases interest paid in years eight and nine qualify for relief.
Replacing inherited "qualifying residence"
Where an individual inherits a house, uses it as a first qualifying residence, sells it and purchases another qualifying residence financed by a mortgage, the individual is a first-time buyer for the purposes of mortgage interest relief on the new qualifying residence.
Married couples jointly or separately assessed
Where a house is purchased jointly by a married couple, who are jointly or separately assessed, any previous purchase of a qualifying residence, eligible for mortgage interest relief, by either spouse will be relevant in determining whether they are "first-time buyers" and when the seven-year span commenced. Thus, if one spouse owned a qualifying residence solely in 2001 and, on marriage, sold it and purchased a new qualifying residence jointly in 2004, both spouses will be regarded as first-time buyers from 2001.
Joint ownership by individuals who are unmarried or are separately treated
Where a house is purchased jointly by persons who are not married, or by a couple who are married but elect to be assessed to tax under separate treatment, each person's entitlement to mortgage interest relief will be decided by reference to their separate circumstances.