I am replying to your recent e-mail regarding Mortgage Interest Relief and, in particular, the changes to the current rate.
Section 244(1A)(b)(i) Taxes Consolidation Act 1997 (as amended by the Finance Act of 2009 and 2010) states -
(i) for the year of assessment 2010 and subsequent years of assessment up to and including the year of assessment 2017 in respect of qualifying interest paid in respect of a qualifying loan taken out on or after 1 January 2004 and on or before 31 December 2011........
It is on the basis of this legislation that Revenue determined that, in your case, the mortgage interest relief rate is based on the drawdown date and you would be entitled to trs at the rate applicable for 2011.
To summarise your questions
1. Is the mortgage interest relief rate deadline based on the drawdown date or the date of first payment?
Drawdown date
2. Does the application form have to be submitted prior to 31st December 2011 to qualify or can this be done after that date if the drawn down or firs payment date (depending on the answer to the above is before 31st December 2011?
Application should be submitted online as soon as first payment has been made. Contact should be made with TRS Section by email at
trsadmin@revenue.ie or LoCall 1890 463626 once you have made online application.
3. If the deadline is based on the first payment date, is it acceptable to make a manual payment before the deadline rather than wait for the direct debit to qualify?
You would need to contact your lender if you wish to make a manual payment.
I trust this clarifies the position.