Bridging Interest Relief - Form 12 -2008

[camellia]

While completing the Form 12 Return for 2008 for myself and my husband I came accross the above relief - Item no 39 on the Return.

We built an extension to our house in early 2008. As part of this process we transferred our existing mortgage to NIB in Februaryand did 4/5 drawdowns on the new mortgage to pay for the extension. NIB insisted on us being on an interst only bridging loan until the final drawdown was made. At this stage, in August, they transferred the balance on the Bridging loan to a tracker mortgage. We then started capital and interest repayemnts and began to get TRS relief again.

I did not think we could claim interst relief on the bridging interest paid (more than €3k). Teh NIB mortgage advisor told me I could not so so. But the Form 12 category 39 makes me think maybe we can. I have tried unsuccessfully to find information on this relief onthe Revenue.ie site.

Can anyone confirm that I can make such a claim on the Form 12? All the interest we paid was on our principal private residence.

Thanks for any help with this query.

 

[Graham_07]

You can claim on mortgage, bridging or other home loan interest for the purchase, improvement or repair to your principal private residence subject to the statitury maximum limits. If you still have spare capacity, i.e. the mortgage on TRS dues not exceed the statitury limits, then the other interest would be allowable.

 

[camellia]

Thanks for that information.

I will see how I get on with the claim on the Form 12.