Tax relief for person who marries homeowner

T

Troy McClure

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If a single person who owns a house for say 10 years marries someone who never owned a house, Is the person who never owned a home then entitled to mortgage tax relief?
If so can it be claimed retrospectively?
 
Rob
The house was owned for 10 years but the marriage was a year ago. Is this other person not entitled to some kind of FTB relief?
 
Troy McClure said:
Rob
The house was owned for 10 years but the marriage was a year ago. Is this other person not entitled to some kind of FTB relief?
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No. Once you get married or co-habit you are considered a couple for relief purposes. To qualify for relief you both have to have FTB status. So essentially, by getting married you lost your right to the relief. It was the same for stamp duty until they removed relief altogether in last budget.
 
They are entitled to relief.

I was in this situation, I married a homeowner and never bothered claiming. I was cautioned by revenue for not claiming my allowance.
 
The answer is: it depends on the amount of interest you paid.


The ceiling for a single person is 10k, married is 20k.

If you actually pay 12k int as a single person, then you don't get TRS on the last 2k.

If you get married, you get TRS on the full 12k.


Who actually gets paid the TRS is a side issue.
 

I called Revenue. If there is TRS still on the main mortgage then the other person can claim FTB TRS which is far higher.
Something else. I asked about the phasing out of TRS. He said if you buy a house this year, with one non FTB and one FTB your combined relief would be on a maximum of 13k interest in the year. 10k of this is for the FTB. If you wait until next year to buy this drops down to 3k for the FTB. The percentages for yr 1,2 is 25%, yr 3,4,5 22.5% and yr 6,7 is 20%
It is gone altogether in 2013.

People who are thinking of buying a house where one or even both are FTB's should be very aware that there is a huge drop in tax relief if they wait until 2012 and none there after. This relief is available is available until 2017.
I would note that only one person needs to be a FTB for this to make a big difference.

Time - What does been cautioned by revenue mean exactly?
 
Also due to the budget change in 09 an anomoly was created where by TRS is per calender year. So if you take out a mortgage in December you have used up a full year's TRS. So you would get 6yrs 1 month TRS in this case instead of 7yrs.

The department of finance was notified of this anomoly but did nothing about it.
 
Time - What does been cautioned by revenue mean exactly?
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They made out by forgetting to claim TRS that I could attempt to use my FTB status on another house to defraud the system. They said if I didn't claim for the house I married into I would be prosecuted.
 
Your kidding!

My situation is exactly that. I explained it fully to the guy in revenue and he advised me to wait until we buy new house which we plan.
 
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