mortgage interest relief 2 houses

N

neddy44

Guest
my wife and i married in 2004 and moved into my house which is mortgaged and i claim mortgage interest relief. we rented out my wifes house but she still claims mortgage interest relief on her property. we are not registered as a married couple with revenue, want to sort this out with revenue, what are the implications of claiming interest relief on the 2 properties?
 
It is owner occupier mortgage interest relief - she is not an owner occupier of her house so should not be claiming the relief. She can claim such relief on the family home mortgage though. She needs to sort this out ASAP and repay any mistkenly claimed relief. There are lots of other potential implications here - e.g. she should be registered with the PRTB, should be declaring rental income, she can offset interest on the mortgage against rental income but only if registered with the PRTB, if she rented the property out within 5 years (prior to November 2007) or 2 years (since November 2007) of purchase as an owner occupier then she could be liable for a clawback of stamp duty on the original purchase. She probably needs to get independent, professional tax advice to figure out any anomalies in her situation other than the mortgage interest relief one and then rectify them.
 
thanks clubman, haven't declared any of the rental income, would there be fines when we would declare for income since 2004 and rectify interest relief?
 
Could well be. You need to talk to an accountant/tax advisor to sort this out and prepare the most appropriate form of return when rectifying things. Such a professional may be able to help mitigate any penalties involved.
 
You must log in or register to reply here.
Back
Top