Mortgage Interest relief and marriage

[dody]

Hi

My husband bought a house in 2002 and received TRS (we were single at the time). I bought a house in 2004 and received TRS. Both as first time buyers. We married in 2005. We have not notified the revenue of our marriage as we are individually assessed PAYE workers. (never thought about TRS until we recently changed mortgage provider). What are the implications now

 

[Clark]

Any advice anyone???

Hi all,

i would appreciate any advice or knowledge on the above thread. I am in a similiar position, my wife and I have both properties and both claim TRS for the last couple of years. We also rent out one of the properties and have given our PPS number to the tenants. We have not declared this to Revenue. Any advice?

P.S- we intend buying a third property soon and renting out where we live now

Thanks

Any advice appreciated!!!!!!

 

[csirl]

Hi

My husband bought a house in 2002 and received TRS (we were single at the time). I bought a house in 2004 and received TRS. Both as first time buyers. We married in 2005. We have not notified the revenue of our marriage as we are individually assessed PAYE workers. (never thought about TRS until we recently changed mortgage provider). What are the implications now

Where are you living now? - obviously you are not living in at least one of these houses.

 

[dody]

We live in my house since marraige in 2005. Was in my name until Dec of this year when we changed provider. They insisted deeds to be transferred into both names as mortgage is in both names

 

[rameire]

as it is in both of your names,
the revenue will now know this and they should stop giving trs for the second house but your trs for the first house may increase depending on the interest charged on the mortgage. this may take some time but they may reduce your trs towards the end of the year due to trs being paid on the second home.
if they know that the second house was not your principle private residence they can come after you for the trs they have paid you.

 

[rameire]

Hi all,

i would appreciate any advice or knowledge on the above thread. I am in a similiar position, my wife and I have both properties and both claim TRS for the last couple of years. We also rent out one of the properties and have given our PPS number to the tenants. We have not declared this to Revenue. Any advice?

P.S- we intend buying a third property soon and renting out where we live now

Thanks

Any advice appreciated!!!!!!

the revenue may come after you for the trs they have paid you.
you can only claim trs on your principle private residence.
they are also cracking down on rented out properties and people who have not paid the second home tax.
if you have provided your pps number to your tenents i take it they are claiming rent relief, the private tennancy board and the revenue are now working together to find people not registered, not paying the second home tax and people claiming trs on second homes.

it is a matter of time before one of the above catch you.

 

[Mrs Vimes]

as it is in both of your names,
the revenue will now know this and they should stop giving trs for the second house but your trs for the first house may increase depending on the interest charged on the mortgage. this may take some time but they may reduce your trs towards the end of the year due to trs being paid on the second home.
if they know that the second house was not your principle private residence they can come after you for the trs they have paid you.

I can't see how Revenue would know that the deeds have changed. They won't stop giving TRS until you inform them that it is no longer allowable.

You need to regularise your situation as soon as possible.

Contact Revenue, tell them that you are now married. You can opt for separate assessment or separate treatment if you are concerned with keeping your finances separate.

Ask Revenue to cancel the TRS on the house you don't live in from the date you stopped living in it even if that was before your marriage.

As Rameire says you may be entitled to higher TRS on the house you live in as a married couple has a higher threshold so this may off-set some of the over-claimed TRS.

Sybil

 

[rameire]

correct, they wont know that the deeds have changed, but they are married and they say both the names are on the mortgage, so the revenue should know this way.

 

[Mrs Vimes]

From the OP:

We have not notified the revenue of our marriage as we are individually assessed PAYE workers.

 

[Troy McClure]

Revenue would ask have they been living together since marriage as it would be obvious that they were both getting TRS on their separate houses, after this date also. As it's not a principal residence in the case of one of the house's this TRS was claimed wrongly.

 

[Clark]

Thanks!!

the revenue may come after you for the trs they have paid you.
you can only claim trs on your principle private residence.
they are also cracking down on rented out properties and people who have not paid the second home tax.
if you have provided your pps number to your tenents i take it they are claiming rent relief, the private tennancy board and the revenue are now working together to find people not registered, not paying the second home tax and people claiming trs on second homes.

it is a matter of time before one of the above catch you.

Thanks so much!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Can I ask ANYBODY?? what would you do if in my boots?
I was thinking of transferring my TRS to the third property in the next couple of weeks and hope the rest is water under the bridge??
Any advise or what do you think??????

 

[peteb]

if you are looking for advice to avoid tax or someone to say its ok, you are unlikely to fine it here!

 

[s1nbad]

I have a house which i lived in before i got married, mortgage since 2005, i have been renting it for 2 years now and didnt realise until last year i could not claim TRS for my house when renting, so they are clawing it back now:-(
Also beware when renting, if you havent signed up to PTRB you cant put your mortgage interest down as an expense.
My question is, we are living in my wifes house, at the moment we are seperatly assesed, if we become joint assesed, will this increase the TRS on my wifes house?

 

[rameire]

it depends on the amount of interest charged on the mortgage

http://www.askaboutmoney.com/showthread.php?t=131548

the above link may help

 

[Clark]

I have a house which i lived in before i got married, mortgage since 2005, i have been renting it for 2 years now and didnt realise until last year i could not claim TRS for my house when renting, so they are clawing it back now:-(
Also beware when renting, if you havent signed up to PTRB you cant put your mortgage interest down as an expense.
My question is, we are living in my wifes house, at the moment we are seperatly assesed, if we become joint assesed, will this increase the TRS on my wifes house?

Thanks,

do you mind me asking how did the revenue find out you where renting the house or how did it transpire you had to pay it back??

Also id you do not mind telling, what agreement did you come to and what was the ballpark total you had to pay back?

P.S- Thanks

 

[Clark]

What would you do?

if you are looking for advice to avoid tax or someone to say its ok, you are unlikely to fine it here!

Thanks

how do I straighten out my affairs without going to a tax consultant who charge ridicilous fees?

Thanks!!

 

[Mrs Vimes]

I would suggest calling a local accountant (ask family or friends for recommendations) and ask them what they would charge to file tax returns for whatever number of years you had the property let.

I don't know what it would cost, but ignoring it won't make it go away.