TRS - FTB and non FTB

[aud]

My sister and I bought a property together recently. She is a FTB, I am not. (I've sold my other property) In order to get away with paying 3% stamp duty, only my sisters name was put on the deeds. We have a joint mortgage and live in the house together.

My question is can we both apply for TRS without alerting the Revenue to the fact we only paid 3% stamp duty? Or should only my sister apply for her TRS and I do without as we gained by not having to pay 6% stamp duty.

 

[ClubMan]

If it's your joint PPR and you are both living there then I would have assumed that you could both apply for owner occupier mortgage interest relief. If this is the case then your sister will get the preferential FTB rate of relief (for the first 7 years of the mortgage - maximum of €4,000 interest p.a. @ 20% = €66.67 p.m.) while you will get the non FTB rate (maximum of €2,540 interest p.a. @ 20% = €42.33 p.m.). See . You can apply for this relief [broken link removed] and it is granted at source by the lender.

 

[WizardDr]

Clubmans point is correct, you do not have to own the PPR to be your PPR, but you can only have one.

Incidentally, ANY loan used for the purchase, repair, upkeep or development of PPR (even if rented) can qualify as 'home loan interest' even if not through the TRS.

As for 'getting away with stamp duty' I am glad to point out that the Minister himself suggested the method on Pat Kenny some time ago. Which is why the Revenue probably didnt then kill it.

 

[aud]

Thank you for your answers. In relation to my old property which I sold in January (I only had it for 6 months) I only used it at weekends as I rented a house in Dublin during the week. I still havent applied for the TRS on my old property but I will do that soon. Can I also apply for rent relief on the house I was renting in Dublin? Or is that being plain greedy!!!

 

[ClubMan]

Incidentally, ANY loan used for the purchase, repair, upkeep or development of PPR (even if rented) ...

Do you mean under the rent a room scheme or something else?

Thank you for your answers. In relation to my old property which I sold in January (I only had it for 6 months) I only used it at weekends as I rented a house in Dublin during the week. I still havent applied for the TRS on my old property but I will do that soon.

Unless it was your PPR you cannot obtain owner occupier mortgage interest relief.

Can I also apply for rent relief on the house I was renting in Dublin? Or is that being plain greedy!!!

You cannot claim TRS and rent relief at the same time. It's one or the other as far as I know.

 

[WizardDr]

A claim for home loan interest does not require you to own your home, it never did. Not widely known, but there you are.

So a term loan if used for the purposes as mentioned earlier, would qulaify for home loan interest relifef subject to the ceilings and its just that TRS may not operate on it, as in you would include it on a tax return.

 

[ClubMan]

A claim for home loan interest does not require you to own your home, it never did. Not widely known, but there you are.

So a term loan if used for the purposes as mentioned earlier, would qulaify for home loan interest relifef subject to the ceilings and its just that TRS may not operate on it, as in you would include it on a tax return.

But you must live there. I'm still confused by your comment above about "even if rented". Are you saying that a loan taken out by an individual to renovate a rented property qualifies for relief or something?