Mortgage Interest Relief for those who bought between 2004 and 2008

[Brendan Burgess]

There have been so many questions about this, that I have compiled this summary. I have not been following it closely, so corrections are welcome.

[broken link removed]

Revenue Tables

[FONT=&quot]For first time buyers who bought between 2004 and 2008 [/FONT]
[FONT=&quot]You will get tax relief at 30% from 2012 to 2017[/FONT] up to a certain maximum

[FONT=&quot]Maximum for single person: €10,000 for first 7 years; €3,000 after that [/FONT]

[FONT=&quot]Maximum for married couple: :€20,000 for first 7 years; €6,000 after that.[/FONT]

Single person thresholds

year of purchase|2012 |2013|2014|2015|2016|2017
2008|10,000|10,000|10,000|3,000|3,000|3,000
2007|10,000|10,000|3,000|3,000|3,000|3,000
2006|10,000|3,000|3,000|3,000|3,000|3,000
2005|3,000|3,000|3,000|3,000|3,000|3,000
2004|3,000|3,000|3,000|3,000|3,000|3,000

All relief granted at 30%
Source Revenue.ie

Example: If you purchased your home in 2004, in 2012, you will be able to claim up to 30% of €3,000 or €900.

Interest paid|€5,000|€1,000
Maximum claim|€3,000|€1,000
Relief rate|30%|30%
Tax saved|€900|€300

Married couples thresholds

year of purchase|2012 |2013|2014|2015|2016|2017
2008|20,000|20,000|20,000|6,000|6,000|6,000
2007|20,000|20,000|6,000|6,000|6,000|6,000
2006|20,000|6,000|6,000|6,000|6,000|6,000
2005|6,000|6,000|6,000|6,000|6,000|6,000
2004|6,000|6,000|6,000|6,000|6,000|6,000

Example - if you bought in 2006, you will be able to claim 30% of the interest paid up to 20,000 in 2012. But in 2013, this will be reduced to 6,000.

|2012|2013
Interest paid|€10,000|€10,000
Maximum claim|€10,000|€6,000
Relief rate|30%|30%
Tax saved|€3,000|€1,200

When is the effective date?
The date of the purchase of the house is the date you completed the sale and drew down the mortgage.
So if you signed contracts in Dec 2008 and closed the sale in January 2009, you are not covered by this.

Am I a first-time buyer if I traded up?
I bought my first house in 2004 but traded up in 2006. Do I still get the relief?

Yes.

Not sure what happens if you traded up in 2009. I don't think you get the 30% relief.

Does it apply to top-ups?
Yes, if the top-up was used to improve your home.
No, if it was used to buy a car or repay other debt.

 

[NorfBank]

I would change the title.
MIS is mortgage interest supplement.
MIR / TRS would be clearer.

 

[Brendan Burgess]

Hi Norfbank

Thanks for that.

Brendan

 

[CherubicTGE]

Hi Brendan,

Your point in relation to the following should be clarified.

Am I a first-time buyer if I traded up?
I bought a house in 2004 but traded up in 2006. Do I still get the relief?
No.


If you bought your first house in 2004 and traded up then you are entitled to this relief. My wife is in a similar situation and revenue confirmed that my wife will be getting 30% relief (she bought first in 2004 and we bought together in 2008). The discussions on the other threads raised on this would also back this up.

 

[Brendan Burgess]

Thanks Cherubic

"corrected" more so than "clarified". I had not realised that.

Thanks for correcting it.

Brendan

 

[thedaras]

Brendan Burgess:

Does it apply to top-ups?
Yes, if the top-up was used to improve your home.
No, if it was used to buy a car or repay other debt.

Does that mean only if you bought in 2004-2008 and topped up during that time?
Or does it apply to anyone who topped up during that period?

 

[L&A]

What about if you built your home during this time? Our stage payments were drew down between Sept 2003 and May 2004, so the house was complete in 2004. Will we qualify, even partially for the draw down in 2004 or do you not qualify if you built your own home at all?
Thanks

 

[pjuegos]

MIR for a (2004-2008)FTB that moves houses in 2012?

Does anybody have an idea of what the situation would be for a (2004-2008 ) FTB that moves houses in 2012?
For example a house owner that agrees with the bank a trade-down Negative equity mortgage to ease mortgage repayments...

In this case, the 1st purchase was within the (2004-2008) year range. Does that maintain the MIR entitlements for future purchases before 2017?

Thanks

 

[munchy]

Does this matter if you are staying in your home or not? When the EBS discovered that I had moved in with friends to rent out my apartment they adjusted my tax status accordingly, despite this being my only property.
To avail of this tax relief do w approach revenue or do we approach the EBS?