TRS on top up

J

Jane07

Guest
Hello,

I was wondering if anyone could help me. My boyfriend and I applied for mortgage for X amount which we received. During the construction of our house we went to the bank to get a top up of 30k. We managed to get this top up. The top up has a different loan/mortage number. We had to go through the process of actually applying for a mortage for this extra 30k. The larger mortage comes out of our joint account every month. About a week later the top up (other add on mortgage) comes out of the account. Are we entitled to claim TRS on the second mortage? Any information on this would be very appreciated.....every little helps.....

Thank you.
 
If the top up was used to improve the property then yes you can claim tax relief on it.

Furniture etc doesn't count as improvement - it would have to be construction type expenditure - eg an extension or an attic conversion.
 
Thanks for replying so quickly. Yes the top was to finish the construction of the house. It wasn't used on furniture.
 
That's fine then.

There is a limit on TRS though so if your first mortgage already exceeds the limit then you won't get any relief on the top-up no matter what it was used for.
 
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