Tax Relief at Source while in arrears

[Jatasha]

My mortgage fell into arrears from 2017 to 2020 when I made no repayments on my loan. An agreement with UB has been reached and my arrears are to be recapitalised.
TRS was not claimed from the Revenue by UB on my loan for those 4 years. Where do I stand on now claiming the TRS for those 4 years.

 

[RedOnion]

TRS is only available in interest PAID. If you didn't pay interest, you can't claim TRS.

 

[Jatasha]

TRS is only available in interest PAID. If you didn't pay interest, you can't claim TRS.

Thanks for the clear reply. However, is there not a facility to claim TRS on interest when the interest is paid at a later date?

 

[NoRegretsCoyote]

This PQ answer from May 2019 might be useful:

The effect of this provision is that only interest paid in a tax year, relating to the current or previous tax year, is eligible for mortgage interest relief, subject to the ceiling (maximum amount of interest allowed) applicable in the year the interest payment is made. In instances where a borrower pays less than the amount of interest due, then the relief is reduced to reflect the actual amount of interest paid. Where no interest payments are made, no relief is allowed. If the borrower pays the arrears in a later year, then the appropriate mortgage interest relief will be paid in the year in which the payment is made, subject to the ceiling applicable for that year.

This might cause you problems if you start paying now as since January 2021 TRS is gone.

Check with the bank, it's not the first time that this would have come up for them.

 

[RedOnion]

My understanding is the same as @NoRegretsCoyote , but it's a few years since I looked at technical aspects.

TRS helpline number in Revenue:
01 738 36 63

 

[NoRegretsCoyote]

Yeah, I doubt it's a principled stand on Revenue's part.

It's just not practical to leave the door open forever when the scheme has been closed. Staff will be put to do other things.