Tax Relief at Source TRS New Guidelines: all you need to know.

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rameire

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If you have a mortgage and you are receiving TRS, you will continue to receive TRS upto and including 2017.

Year 1 & 2 at 25% Ceiling 10,000
Year 2 & 3 & 4 at 22.5% Ceiling 10,000
year 6 & 7 at 20% Ceiling 10,000
all years thereafter at 15% Ceiling 3,000 Ending 31/12/2017

If you topped up or purchased in the last 6 years and were receiving TRS at the rate of 15%, you will continue to receive TRS at the rate of 15%.

If you purchase a property and it is your first property either in 2010 or 2011 you will receive TRS up to and inluding 2017 at the current rates below:

2010 yr1 25% ceiling 10,000 per person
2011 yr2 25% ceiling 10,000 per person
2012 yr3 22.5% ceiling 10,000 per person
2013 yr4 22.5% ceiling 10,000 per person
2014 yr5 22.5% ceiling 10,000 per person
2015 yr6 20% ceiling 10,000 per person
2016 yr7 20% ceiling 10,000 per person
2017 yr8 15% ceiling 3,000 per person

Obviously if you buy this year you will receive 8 years of TRS.
If you buy in 2011 you will receive trs for 7 years.

If your TRS has expired prior to 1/1/2010 and you purchase a new private residence or top up your mortgage in 2010 or 2011 you will receive TRS at the rate of 15% on a ceiling of 3,000 up to 31/12/2017. ( only on the new borrowing amount )

If you are a First Time Buyer and you purchase ( top up ) in 2012 you will only receive TRS at a rate of 15% on a ceiling of 3,000 up to 31/12/2017.

If you are not a First Time Buyer and you purchase ( top up ) in 2012 you will only receive TRS at a rate of 10% on a ceiling of 3,000 up to 31/12/2017.

If anybody purchases on or after 1/1/2013 you will not receive TRS ( tough )

TRS will be totally abolished in 2018.

All ceilings above are shown for one person.
below are some different ceilings possible.
3,000 one person
6,000 two people
10,000 one person
13,000 two people
20,000 two people
 
Re: New TRS Guidelines


Page 2 of http://www.finance.gov.ie/documents/publications/finance bill 2010/memo2010.pdf

...
...
Section 6 amends section 244 of the Taxes Consolidation Act, 1997
to provide that tax relief on qualifying mortgage interest paid will
continue to be available at current levels for the tax years 2010 to
2017 in respect of interest paid on qualifying home loans taken out
on or after 1 January 2004 and on or before 31 December 2011.
...
...
 
Re: Trs trs trs trs trs trs

OK hopefully I'm not asking something really dumb here but here goes.....

Myself and GF (now wife) started a mortgage with First Active in late 2003 and claimed TRS from then. We moved the mortgage to Ulster and topped up in Nov 2005. I would presume that we are entitled to interest relief from 2003 - 2009 inclusive (should've waited till 2004 to claim but anyway...). Sure enough our mortgage payment increased c. €60 per month in January which I presume is the end of the TRS (although our TRS was c. €70 per month ).

Looking at the first post here, it would seem that we should still be receiving TRS. Looking at the second, it seems that we may not, and that we might have taken out our mortgage about 2 months early . Perhaps someone can shed some light for me?!

I will be giving Ulster a ring later but would prefer to get some info first.

Cheers!
 
you topped up in 2005
due to this you will continue to get trs on the top up amount only at 15% or the interest or ceiling, whichever is lower until 31/12/2017.
 
Cheers Rameire - that makes perfect sense. Pity I didn't take my mortgage out a couple of months later! At least I still get a tenner a month!.......
 
Example 1

2 people on mortgage
Not a first time buyer
Bought house in 2000 for 480,000
Trs stopped end of 2009
Mortgage topped up in 2008 for 120,000 at a rate of 5.3%
Ceiling is now 6,000 ( 2 x 3,000 )
Trs Rate is 15%

Year, Balance, Interest Paid, Trs Per Year, Trs Per Month,
2010 --114k ------6,042 ---------900.00-------- 75.00
2011 --111k ------5,883 ---------882.45 -------- 73.53
2012 --108k ------5,724 ---------858.60 -------- 71.55
2013 --104k ------5,512 ---------826.80 -------- 68.90
2014 --100k ------5,200 ---------780.00 -------- 65.00
2015 --95k -------5,035 ---------755.25 -------- 62.93
2016 --90k -------4,770 ---------715.50 -------- 59.62
2017 --84k -------4,452 ---------667.80 -------- 55.65

TRS STOP 31.12.2017
 
Example 2

2 People on mortgage
Both First Time Buyers
Bought 2004
Mortgage balance is now 350,000 rate is 4.65%
Is now year 7 of the mortgage,
Ceiling is 20,000 ( 2 x 10,000 )
Trs rate is 20%

Year, Balance, Interest Paid, Trs Per Year, Trs Per Month,
2010___350k_______16275_______3,255___________271.25


2011 is Year 8 of mortgage thus ceiling drops to 6,000.00 ( 2 x 3,000 ) Trs Rate is now 15%

Year, Balance, Interest Paid, Trs Per Year, Trs Per Month,
2011___342k_______15,903 _______900___________75
2012___________________________900___________75
2013___________________________900___________75
2014___________________________900___________75
2015___________________________900___________75
2016___________________________900___________75
2017___________________________900___________75

TRS STOP 31.12.2017
 
Example 3

1 Person on mortgage
First Time Buyer
Bought 2010 July First Repayment August
Mortgage balance is 178,000 rate is 3.85%
2010 is year 1 of mortgage
Ceiling is 10,000 ( 1 x 10,000 )
Trs rate is 25%

Year, Balance, Interest Paid, Trs Per Year, Trs Per Month,
2010___178k_______2,707_______676.77 ________135 for Aug, Sep, Oct. Nov, Dec.
2011___176k_______6,776_______1,694___________141
2012___173k_______6,660_______1,498___________125
2013___170k_______6,545_______1,472___________122
2014___166k_______6,391_______1,437___________120
2015___160k_______6,160_______1,232___________102
2016___154k_______5,929_______1,185___________98

Year 8 of mortgage ceiling is now 3,000 rate of trs is now 15%

Year, Balance, Interest Paid, Trs Per Year, Trs Per Month,
2017 _147k ________5,659_______450___________37.5

TRS STOP 31.12.2017
 
Hi, another dumb question if I might:

Why does topping up the mortgage make a difference and extend the availability of TRS? I thought it was only available f0r 7 years from date of purchase of first property?

Presumably though if you bought in 2003 as a FTB, sold in 2006 and bought again in 2007, the TRS still runs out in 2009 and is not extended?
 
the first answer is it was brought in the budget in oct 2008 for 2009 onwards, it was just one of those things.

and secondly you are correct.
 
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