Subject to TRS instruction to solicitor?

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RiceCakes

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We have had an offer accepted on a property and as FTB we very much want to be eligible for TRS if possible before its probably taken away in December.

To claim TRS I think we have to draw down on the mortgage before December 31st (assuming that is indeed the cut off date). Is it correct to assume that drawing down is when your bank issues the cheque to the vendor so a few days after you sign contracts?

Therefore can we ask our solicitor to instruct the vendors solicitor that the sale will go though subject to contracts being signed by December 21st (enough time for the "drawing down" to take place?) and if after that we would expect a reduction of €xx euro to compensate the lost of TRS? We want to be open about that rather than be seen to be gazundering the vendor.

Thanks for any advice in advance.
 
I would not consider that enough time to allow for drawing down cheque especially with Christmas in the way, anything can go wrong and regularly does.
 
TRS start date is from when you start been charged interest. I.e the day after the cheque is cashed. When you cash the mortgage cheque you will get a mortgage account number then you can apply for trs apply online. The funny thing is that they ask for your first repayment date so even if you manage it, you will need to prove you started been charged interest in 2011, as your first repayment will be in 2012.
You need to have that cheque cashed before Dec 31st. The difference for FTB's between doing this before and after Dec 31st is substantial tax relief. This is somethng thats worth thousands to you (As the system currently stands) so insist on getting things together before Christmas.
 
Thanks wbbs and Troy McClure, I have told the agent that we will only sign if its done by the first week of December or we will be pulling out or looking for a substantial reduction. I know that's pushing it but it's a lot of money so I don't think we are being unreasonable to ask this upfront.
 
Subject to TRS instruction to Solicitor

Hi,

I had a similar query and contacted the TRS section of Revenue for clarification. See reponse below, but basically you need to have made your first repayment before 31/12/11 and not just drawn down the cheque.

Good luck.


"The date of your first repayment is the date that is used to class your mortgage, which is normally the date you also start to pay interest. So if you want to qualify for the higher rate of 2011 your first repayment must be in that year. If you don't make a payment until 2012 you will qualify for whatever the rate for that year will be.

Yours sincerely
Trs Section
 
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