TRS on Top Up Mortgage

C

cazmayo

Registered User
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After nearly 3 years, we discovered that there was no tax relief being applied to our top up mortgage. I did submit the form, but it was never applied.
So I got tax cert from First Active and submitted them to the revenue.

Its just I dont understand the calculations. I thought you got 20% tax relief on the qualifying interest.

Interest charged 2006 1171.51
Interest charged 2007 3193.52

Mortgage Amount: 65,000
75% qualifying for TRS

So I thought, total interest on top up = 4365.03 but only 75% qualify so thats
3273.77 at 20% so thats 654.75

BUT i was only refunded €368.56

Revenue calculations

Top Up Account - Interest paid €3193.52 @ 75% qualifying
Main Account - Interest paid €8699.33
Total Qualifying Interest - €5,547.23
Total TRS Due - €1,109.44
TRS Received - €946.48
Refund - €162.96

2006

Interest paid €1,175.51 % 75% qualifying
Interest paid €6,406.57
Total Qualifying Interest - €3,642.59
Total TRS Due - €728.51
TRS Received - €707.19
Refund - €21.32

Thats each.

Can anyone explain where their figure comes and how I miscalculated??

Kind Regards
Caz
 
Has it anything to do with how long you have your mortgage, are you outside the first time buyers 7yrs full interest relief. If so your max TRS would be based on 6k which seems closer to what they seem to have allowed less 75% of some calculation. Havent a calculator handy to check my theory!
 
No, we built our house, but our first draw down was in Dec 2003, so we should still be first time buyers??

Im puzzled. I asked for clarification and that is what I got.
Just wondered was there something blaringly obvious that I wasnt getting.


Hmmm.
Caz
 
Looks like Revenue are capping your interest, which does seem wrong. I think you'll have to contact them.
 
Maybe it depends on the top up. You are not allowed to claim TRS if the top up is not used for property. So if you bought a car or holiday etc you are not entitled to TRS. They can ask for receipts.
 
Ceatharlach said:
Maybe it depends on the top up. You are not allowed to claim TRS if the top up is not used for property. So if you bought a car or holiday etc you are not entitled to TRS. They can ask for receipts.
Click to expand...

But I think this is why they only allowed 75% in the calculations above.
 
I already declared that only 75% of the top up was spent on the house and that has been included in my calculations. Too honest I am!!

As a married couple, still under first time buyers, we are no where near the limit, so I dont know.

I have emailed them again, as I think there has been some mistake.

Thanks - will let you know.

Kind REgards
Caz
 
cazmayo said:
As a married couple, still under first time buyers, we are no where near the limit, so I dont know.
Click to expand...

your 7 years is almost up
2003 - year 1 (even though it was only december, bang goes the whole year)
2004 - year 2
2005 - year 3
2006 - year 4
2007 - year 5
2008 - year 6
2009 - year 7

Enjoy the last year!
 
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