TRS calculation query

I am wondering if someone can help clarify what our TRS should be as I am getting so confused it's not funny anymore!

Amount borrowed:€404,800 on a 3 year fixed rate in August 2006, mortgage cheque being drawn down in the next few days so we have not started paying our mortgage yet. We paid deposit last April & signed contracts in August and the house will be ready for occupation in the next few weeks, it's way behind schedule but anyway!...that's for another day.

We are married and FTB's so I see that the rate is €8,000 for a married couple and we are both on the higher rate of tax (41%) so what is our monthly TRS going to be.

Thanks in advance!!

I'd imagine you'll get the maximum...266 per month

Mag2006 said:

We are married and FTB's so I see that the rate is €8,000 for a married couple and we are both on the higher rate of tax (41%) so what is our monthly TRS going to be.

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Your marginal income tax rate is irrelevant since TRS is at standard rate only (20%). TRS was €8,000 p.a. for (two) joint FTB buyers (married or not) in 2006 but it's €16,000 in 2007. This means a maximum of €8K @ 20% / 12 = €133.33 p.m. (2006) or €16K @ 20% / 12 = €266.66 p.m. (2007) in relief. See [broken link removed]. You'd need to post details of your mortgage term and current rate to know if you get the maximum relief. Or use Karl Jeacle's mortgage calculator to figure it out - enter your details and then look at the Annual Table details to see how much your annual interest bill is estimated to be.

I had been checking this out today, a married couple gets €16,000, the lower tax rate if 20% is used, regardless of the tax bracket your in.

Therefore and the other poster said its €266 deducted at source.

Crossed post!

Thanks guys for the replies and for making it all clear to me. We get the 266.66 thank god. It makes a massive difference doesn't it!!.

Mag2006 said:

Thanks guys for the replies and for making it all clear to me. We get the 266.66 thank god. It makes a massive difference doesn't it!!.

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It certainly does...just be careful you never claim TRS on portions of the mortgage that don't pertain to the property. The purchase of the house and structural improvements qualify. Furniture, carpets, cars, holidays and investments are a definite no-no!
Good luck in your new home

Oh god yeah, fully aware of that..did my post make it that obvious that I was blonde??!!!LOL!!. With the amount of money the house has cost the furniture etc is being done bit by bit but we have beds, sofa, kitchen appliances and a few bits. We will be on concrete for a while though...ah well the joys!!!!!!