Mortgage interest relief - budget 2008

S

sandrat

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what were the changes in the budget in relation to TRS? We got a letter today and apparently our monthly repayment has gone up slightly due to new tax relief changes...?
 
What do you mean? There is preferential relief for "first time buyers" and then lower relief for others. The "FTB" relief period starts when you get your first mortgage on your first home and continues for 7 years until used up even if you move mortgage provider/house.

If you are a first time buyer then you can get relief at the standard rate (20%) on a maximum of €10K interest p.a. per mortgage holder.
 
Hi,

I'm confused. Last year we got €266 TRS ( I think thats the Max amount), should I get less or more TRS this year. This is our 2nd year in the house.
 
llee said:
Hi,

I'm confused. Last year we got €266 TRS ( I think thats the Max amount), should I get less or more TRS this year. This is our 2nd year in the house.
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How much interest are you paying per year? You should have got a statement recently confirming this. If you don't know, how much do you owe at present on your mortgage?
 
Hi,

I haven't got a clue I did get a statement but didn't really study it, I know I should have. We got a Morg for 401,000 so we've only be paying the morg a year! Hope this makes sense..
 
Okay - very rough calculations - you'll pay ~>€19,400 interest in 2008. There's two of you so your tax relief should be...

€19,400 x 20% = €3,880 / 12 = more than €320 per month
 
llee said:
Hi,

I haven't got a clue I did get a statement but didn't really study it, I know I should have.
Click to expand...
Well post some details here so. It's almost impossible for people to comment authoritatively if you don't give them some details to go on...
 
Tax Year 2008

Relief Available

First Mortgage* - Ceiling €20,000
First Mortgage*- Tax Credit €4,000

What does this tax credit refer to?
 
The tax credit is the amount of interest qualifying for relief multiplied by the standard rate of income tax 20%. For example if you qualify for relief on €20K of interest and pay at least that amount annually then you get a €20K @ 20% = €4 tax credit. If you qualify for relief on €20K but pay less than that then you get a tax credit of the actual interest amount @ 20%.
 
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