TRS rate increase?

B

buyerbeware

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Hi there. My partner and I pay our mortgage out of a joint account - it's now at about €386k and we fixed it for three years earlier this year. Our monthly payments are about €2100, but we only get €133 TRS. Is that not the rate for a single person? Does anyone know who i should contact to get this sorted? Should it be the revenue or the mortgage lender? Any advice much appreciated.
 
€133.33 (€8K @ 20% / 12 months) is the maximum rate of relief for a single FTB. If you are paying more than €8K interest p.a. and should be entitled to more relief then contact Revenue to rectify this situation.
 
Thanks for that. I look forward to being on hold for the afternoon.
 
You should be able to do this online without hanging on the telephone.

What are the details of your mortgage just to get an idea of how much interest you will pay this year - e.g. mortgage amount, term, rate, start date etc.?
 
With the details already posted I think it's safe to assume that the poster will be paying over the €16,000 interest threshold this year. I'm assuming that they're First Time Buyers or within seven years of their first home purchase although this isn't stated.

The post does suggest that they may not be married. If this is so, each partner must apply for TRS individually - the original poster may be getting their own TRS only.

See Note 2 on Page 2 of the [broken link removed].

I'm also assuming that the partner is jointly-named on the property and mortgage as this would be relevant.
 
Currently fixed for three years since last May- 28 years to go. Initially started mortgage in July 2005 for 300k then in 2006 topped up mortgage to 400k to buy out an interested party and changed lender from permtsb to IIB. I should think we'd definitely qualify for the full rate for both of us. We got married this year but this shouldn't affect anything should it?

Many thanks
 
We got married this year but this shouldn't affect anything should it?
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On the contrary - it affects everything. But let's get back to the TRS question. :p

Do you know did your spouse already apply in their own right for TRS? See my earlier post above.
 
Hmmm. He's PAYE and most likely has not applied for it. Yikes. Does this mean that it won't be backdated if I get it sorted? He is co-owner of the house.
 
It will be backdated if necessary. PAYE has nothing to do with owner occupier mortgage interest relief at source. It did when it was granted not at source but via tax free allowances/credits in the past.
 
best way to contact TRS section in revenue is just to email them - include your PPS numbers - they will reply promptly and that way, your question - and reply - is clearly spelled out..
 
buyerbeware said:
Currently fixed for three years since last May- 28 years to go. Initially started mortgage in July 2005 for 300k then in 2006 topped up mortgage to 400k to buy out an interested party and changed lender from permtsb to IIB. I should think we'd definitely qualify for the full rate for both of us. We got married this year but this shouldn't affect anything should it?

Many thanks
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you will not qualify for the full 400k, only the 300k portion. if you are filling the form online you need to specify this. i am not sure what you mean by an interested party, do you mean they had a share in the house. if that is the case and since you bought out their share using top-up mortgage that amount will not qualify for TRS.
 
Hi again

I have more details. I've checked with my husband and he doesn't remember applying for TRS, although he thought he filled in all the forms like this (Life Insurance and Mortgage Tax Relief etc) when applying for our new mortgage.

However, we're still unsure whether or not we're both getting TRS as the cut-off ceilings are confusing online.

The Revenue website says the ceiling for a single FTB was €800 and changed to €1600 in the January budget.

However the form he downloaded today (TRS1) states on its attached notes that the ceiling is €4000 for a single FTB.

€133.33 (€8K @ 20% / 12 months) is the maximum rate of relief for a single FTB.
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Presuming that the revenue have listed the ceiling incorrectly (the muppets), this would indicate that the figure of €133.33 is TRS for BOTH of us. Right?

That is - €4000 each meaning that we HAVE both applied for (and are getting) TRS.

However, the €133 has only been coming into our joint account since January. We're applying for backdated TRS for the outstanding period.

Anymore advice much appreciated (but no guesswork please as we have enough of that here at home.)
 
I also meant to say:

Are you sure? If the topup was used to buy out an original co-buyer then surely interest on it does qualify for relief?
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Yes. It was my brother who was temporarily co-owner.
 
buyerbeware said:
The Revenue website says the ceiling for a single FTB was €800 and changed to €1600 in the January budget.
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Those figures are the before and after tax credits. Previously relief on up to €4K was granted = €4K @ 20% = tax credit of €800 p.a. FTB relief was doubled so that now it's €8K @ 20% = tax credit of €1,600 p.a.
However the form he downloaded today (TRS1) states on its attached notes that the ceiling is €4000 for a single FTB.
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Either that form is out of date or the data on the form is out of date. Two FTBs buying together qualify for relief on a maximum of 2 x €8K = €16K. If they pay more than €16K interest in a year then they get relief on €16K. If they pay less then they get relief on the actual amount paid.
 
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