Clawback of TRS

I got married last summer. My husband and I both owned properties ( his mortgage is joint sole title.. in his name) whilst mine is in my name only. We have both been claiming TRS and we just realised that you can only do so on PPR which you have to elect when married. Will revenue clawback the TRS on my husbands property from date we got married or from Jan '09? Also, will they expect that in a lump sum? We dont plan to rent the other property as we live between both.. are we entitled to any relief on the second property?

Any advice appreciated!!

On marriage you are not obliged to go blindly forth and be jointly assessed.

You need to look at the various issues around your assessment first, then if seperate assessment is fine in the short term (remember the 7 year rule to come in) you may choose to undo the joint assessment (if done) and elect your PPR each.

Before anyone jumps down this thread about tax evasion OP has stated they live between both properties.

Spouses living together can only have one main PPR irrespective of their filing status.

If they have more than one PPR they may agree with the Inspector of Taxes which is to be treated as PPR by giving notice in writing within 2 years of the beginning of the period of acquisition of the second residence (or marriage).

Thanks for the info. We have decided to elect my house as PPR but as didnt realise until now this was an issue, we are wondering will we have to pay back the TRS on the other house from date of marriage. Does anyone have experience of this?

thanks!

I don't have experience of this - not come across it before now - but I suggest you ring the TRS section of the Collector General on 1890 46 36 26, and they should be able to help you.

I would imagine that they would raise an assessment for the amount due back, and should allow you to make arrangements to pay over a period of time - but they may well charge interest on this.

Let us know how you get on.

Thanks Domo.

I am eagerly awaiting their reply. They are checking with the compliance section to see. I heard that you are treated as two single persons in year of marriage and am hoping that might mean we may not have to pay from aug to dec. Wil let you know.

On different point, do you know if joint assessment is best way to be taxed if married and both people on higher tax ( 50k and 80k). Does it matter how we share the credits?

Thanks,

Joint assessment is automatic and no disadvantages.
It does not matter how credits shared - all comes out in the wash at the end of the year.