Tax relief at source

G

geeser78

Guest
i was wondering if anyone can tell me how much of an allowance myself and my girlfriend have per month on a mortgage of 220,000 over 35 years at a rate at present of 2.94%.

Can anyone offer a link into how to calculate the amount?
 
The maximum relief available is for first time buyers in the first 7 years of their mortgage. For such individuals €4,000 of any interest paid per annum is subject to tax relief at 20%. That's worth €66.67 per person per month or €133.34 for joint mortgage holders - i.e. your "gross" mortgage repayments should be reduced by the relevant amount. You can apply for owner occupier mortgage interest relief [broken link removed]. To see how much interest you will be paying on your loan you can use Karl Jeacle's mortgage calculator.
 
If you mean TRS I calculate the allowance as 108 pm 54 each. Is is calculated as follows

Mortgage Outstanding * interest rate = Interest paid * 20% std rate of Income tax

220,000 * 2.94 = 6,468 *20% = 1,294 pa = 108 pm = 54 each pm
 
This is wrong. You are allowing relief on all mortgage interest. In fact only €4K of mortgage interest per person qualifies for relief. Anything above this does not attract any tax relief. For joint mortgage holders paying at least €8K in mortgage interest in the year the relief is worth €8K x 20% = €1,600 p.a. or €133.33 p.m. See [broken link removed].
 
Clubman,

But they are only paying 6,468 in interest (3,234 each which is less than 4,000 each)

In my explanation I could have said subject to 8,000 interest paid per annum but as they were only paying 6,468 I did not see the point.
 
If my partner claims for TRS as well (joint mortgage) is she given the same as I am currently or does she receieve half of my allowance and I the other half. If its the latter (i.e. the present sum divided by 2) is it still worthwhile her applying?
 
asdfg said:
Clubman,

But they are only paying 6,468 in interest (3,234 each which is less than 4,000 each)

In my explanation I could have said subject to 8,000 interest paid per annum but as they were only paying 6,468 I did not see the point.
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Sorry - my mistake. I see now how you are doing it. Apologies for any confusion caused!
16024 said:
If my partner claims for TRS as well (joint mortgage) is she given the same as I am currently or does she receieve half of my allowance and I the other half. If its the latter (i.e. the present sum divided by 2) is it still worthwhile her applying?
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Assuming the mortgage is split 50:50 then each individual gets 20% relief on a maximum of €4K interest p.a. as explained above and in the links provided.
 
Can Revenue get it wrong when calculating TRS? According to the Revenue website [broken link removed] , the ceiling for all married purchasers bar first time buyers is €5080 which equates to tax relief of €1016 PA or €84.67 per month. What would happen if Revenue were allotting €122.50 per month to a second time buyer? Would they eventually realise their mistake and claw it back?
 
Some of the information on the Revenue website is out of date. I remember seeing incorrect TRS figures which had not been revised for changes in recent budgets. On a more general point - yes, it is quite possible for Revenue to get information and calculations wrong so if you check them and think that this is the case then query it with them. If a non FTB is mistakenly receiving FTB TRS relief then Revenue probably will claw back the excess relief when the matter comes to light.
 
we are paying around €6,100 a year in interest and are getting approx. €103 a month in interest relief. When we changed our mortgage provider and increased the principle, would the tax office have been automatically notified in the change in interest or would we have had to submit something to get our correct interest relief? If we haven't been geting the right amount since we changed provider, can we claim what we're owed back? Thanks!
 
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