Mortgage Interest Credit no longer available on ROS?

I've downloaded the 2007 Form 11 and the new ROS Offline Application. It seems one can no longer claim a credit for Mortgage Interest on the new form. Did I miss it, or can this credit now only be granted at source?

extopia said:

I've downloaded the 2007 Form 11 and the new ROS Offline Application. It seems one can no longer claim a credit for Mortgage Interest on the new form. Did I miss it, or can this credit now only be granted at source?

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Cannot be claimed on Form 11 for mortgages. However unsecured loans used for the purpose of buying or enhancing one's PPR can still be claimed on the Form 11. Page 17 sect. 511. For prior year claims of TRS use this form. [broken link removed]

You can claim TRS online in case that helps.

[broken link removed]

Or using the [broken link removed].

Why did this change I wonder? PPR mortgage interest relief was always claimable on the online Form 11. In my case it's a relatively small amount and I've always just used it to reduce the tax bill at the end of the year.

extopia said:

Why did this change I wonder? PPR mortgage interest relief was always claimable on the online Form 11. In my case it's a relatively small amount and I've always just used it to reduce the tax bill at the end of the year.

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Hasn't been available since 1 January 2002. What can be claimed is interest on unsecured e.g. credit union/bank loans.

I don't think this is true. I've been claiming mortgage interest credits every year on the online form 11.

extopia said:

I don't think this is true. I've been claiming mortgage interest credits every year on the online form 11.

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If you read the text beside the box you are ticking it states "Amount of relievable interest paid on UNSECURED Home Loans for the purpose of repair, development or improvement of your man residence" A mortgage is NOT an unsecured loan and your claim on the form 11 is technically incorrect.

You're talking about the box on the current form, in the charges and deductions section. This seems to have replaced the previous Mortgage Interest box, which was indeed available up till 2006 in the Personal Tax Credits section. If you checked that checkbox, it allowed you to enter the mortgage interest paid, and assigned the credit accordingly.

In the help section for this part of the form, this is what the instructions said:

"Enter the net amount of interest paid on a loan used for the purchase, repair, development or improvement of your main residence where Tax Relief at Source has not been granted. Note where Tax Relief at source has been granted on another loan(s) then ensure the amount of interest claimed here plus the interest on the Tax Relief at Source loans(s) does not exceed the allowable limits."

No mention of whether the loan was secured or not. So obviously mortgage interest could be claimed here.

See section 509 on page 3. This has been the case since 01.01.02. This helpsheet relates to 2006 returns.

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Interesting. That contrasts with the help files that install with the offline Form 11 2006. So I assume they've now fixed this anomaly. I'll go ahead now and apply for TRS. Thanks for the help, everyone.

I assume there won't be a problem with having claimed via Form 11 for the past few years given the info in the accompanying help files (i.e. no mention of the loan having to be unsecured).