Bingo!
Well done Brendan, you spoke very well.
What about the person buying that house now?An average 3 bed home owner in mid market Dublin bought in 2006 on a 1% tracker and 25 year mortgage, is paying about €2,400 a month.
Someone buying the same home in 2015 is no where near that type of payment.
It has been badly explained.
The calculation will be as follows
View attachment 8030
Obviously, if your mortgage rate was fixed at the same rate for 2023 and 2022, you will not have paid increased interest.
But if you were fixed for part of either year, it won't matter - if you pay more in 2023 than you paid in 2022, then you will get the tax credit.
Brendan
See Brendan's post above - 10:16 today. Calculate your interest paid in 2023 and your interest paid in 2022.Hi all,
I'm right in the middle of fixing my tracker and should be fixed in the next few weeks. Can I benefit from this measure given I will have had a tracker for at least 10 months of 2023? Thanks in advance!
Thanks!See Brendan's post above - 10:16 today. Calculate your interest paid in 2023 and your interest paid in 2022.
Given this appears as a tax credit (or that's the impression given) will people be limited to a refund on the amount of tax they have over payed?
You could have a substantial amount of people whose tax liability Is less than €1,250. Maybe additional tax credits like the incapacitated child tax credit coupled with high pension contributions or tax relief for nursing home fees/medical expenses. Given the great 10 years tracker holders had it would not be surprising if they were pumping every spare penny into a pension and minimising their PAYE. Quite a lot of earners would pay more in PRSI and USC than PAYE over 12 months.It is a tax credit. So most people with mortgages will be paying tax in excess of €1,250 so they will get this.
However, the Department of Social Protection will pay a welfare payment to any of their clients who have mortgage interest, but who don't have tax to set the credit against.
I don't know what would happen in the few cases where the tax liability is less than the tax credit.
Brendan
Thanks Brendan and well done on Primetime last night.It has been badly explained.
The calculation will be as follows
View attachment 8030
Obviously, if your mortgage rate was fixed at the same rate for 2023 and 2022, you will not have paid increased interest.
But if you were fixed for part of either year, it won't matter - if you pay more in 2023 than you paid in 2022, then you will get the tax credit.
Brendan
Yes.Is it a comparison of interest paid between calendar years ‘22 and ‘23
Yes.do people need to wait until January ‘24 before requesting the relief?
will it be case of having to post hard copy mortgage statements for each year to Revenue?
Yes you would need to wait until 2024 to claim as part of your 2023 tax statements.Thanks Brendan and well done on Primetime last night.
A few practical questions on the process.
Is it a comparison of interest paid between calendar years ‘22 and ‘23 and if so, do people need to wait until January ‘24 before requesting the relief?
Also, will it be case of having to post hard copy mortgage statements for each year to Revenue?
Thanks again,
R
I'm in the exact same situation. No help for me on my SVR mortgage and negative equity a few years agoI got in just before ECB rates went up with a 1.95% 7 year fix. Before that I think I had a 3% 5 year fix. I never benefited from the low Tracker rates. But I'm happy enough with the measures, even if I don't benefit from them. No problem at all with people getting a bit of help with increased payments, even if there is a moral hazard argument against it.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?