TRS Question please

T

TRSJUNKIE

Guest
Hi Guys


In relation to the TRS change due Jan 2012.

We are approved for a mortgage but requested a 3 month moratorium so our payments wont start till Mar 2012.

We will be signing and closing in 2011 December and be in the house 2011

Can anyone confirm if the 2011 TRS allowances will apply?

Is it from drawdown of mortage or do I have to pay the first repayment?

Apologies if asked previously,cant locate a definite answer on the web.
 
This is a grey area. I was told by TRS revenue guy its from when you start incurring interest. However the application says first repayment date. I asked the guy to send it to me in writing. When I got the letter it said first repayment date.
Allowing there is no further change in coming budget, this is a significant about of tax relief if your a first time buyer.
If you are you would be nuts to pass up on it. If I were in your position I would make absolutely sure to get a first repayment done before year end. Then have your mortgage break from there. I would apply for the TRS now! Can be done online/
If you are a FTB I would be absolutely sure what would happen here rather than lose this TRS, as the drop in january is large.
I dont know what use a 3 month break is to you and would not risk the level of TRS afforded in 2011, for the sake of a 3 month break. Its like saying I would rather a weekend away than a good used car. A no brainer.
Call revenue TRS hotline and see what they tell you. Get it in writing. You may be able to organise with the bank to make a repayment within a couple of week of drawdown if you explain to them. We explored this and some would and others wouldn't. We drew first repayment down in Sept and first repayment is only going in Nov. I payed a small nominal amount off the mortgage just to register a repayment to the mortgage in case of sudden changes. let us know how you get on.
 
thanks Troy ..I thought as much..appreciate a reply.

seems very harsh on people completing in December that they would miss out. will cancel the moratorium. hoping to close late nov.hopefully no hitches.

can i change the date of repayment to december even if i close in the same month (ie close the second and change repayment to 27th?
 
A cut off has to happen somewhere and it's as good as any. I would not 'hope' to close. Check with you bank when is the latest you need to close to get repayment done in 2011 (discuss options explaining your dilemma).
Once thats established I would then lay it down as such.. If all parties involved can not meet this date then the amount of loss of tax relief to you would be taken off the offer price. I would make this as a condition of sale to 'focus' all involved.
 
Hi guys

Just a update on TRS.

Rang the TRS and they said it is from first repayment..(ie you have to make a repayment in 2011). have not got it writing but not taking the chance, unfourtnate as the FTB moratorium is wiped and we have to fill a 30 pg from to get another... if anyone else hears otherwise on the matter apprecaite a reponse!!

side note : ridiculous that nothing is set in stone by govt.. when first introuduced I understood it was from date of contract signing, now drawdown or first repayment.
 
So why not make a payment in 2011. I would argue that if you make a payment you are paying interest from then. Even if it's a manual payment.
Other than that you could ask your bank can you make a repayment as soon as drawdown is made. Some will and some wont.

"unfourtnate as the FTB moratorium is wiped and we have to fill a 30 pg from to get another... "

What does this mean?? What moratorium?
 
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