TRS went down and UB say TRS won't be extended to 2017

Hi,

Checked my UB account and noticed my mortgage payments(tracker) has gone up this month. Contacted UB to enquire why and they tell me it's to do with TRS. I originally purchased in April 04. My TRS was due to run out this year (extended in the supplementary budget 2010). I asked the girl in UB will this be extended until 2017 "she said no" that she never heard of this extension and to contact Revenue. Looking at Citizens information it says it will be extended until 2017 (for anyone who bought in 2004). Has anyone had the same experience? Ranger

You seem to be right on the limit of 7 years so it may be down to exact dates on when you drew down your mortgage.

Only the revenue can give you a definitive answer at to whether it will be extended to 2017.

Thanks Callybags. Drew down in April 04. Below is from Citizens info. which is also on revenue website. According to the below I will be entitled to it but I'm sure UB will try and pull a fast one (and say it's Revenue) It's unbelievable that people working in UB or any other banks don't know these facts.


Measures in Finance Act 2010

• Mortgages taken out between 1 January 2004 and 31 December 2011 will continue to qualify for mortgage interest relief at current levels up to the end of 2017.

You need to focus on the fact that it is revenue that grant the TRS and not Ulster Bank.

You can always clain it back via a Tax return at the end of the year if you don't have it deducted at source.

Perhaps you should forward the wording above to the bank and see what they say.

Will do thanks.

Again as Callybags said nothing to do with UB, they just apply to the account whatever TRS revenue advise them to.

ranger said:

Hi,

Checked my UB account and noticed my mortgage payments(tracker) has gone up this month. Contacted UB to enquire why and they tell me it's to do with TRS. I originally purchased in April 04. My TRS was due to run out this year (extended in the supplementary budget 2010). I asked the girl in UB will this be extended until 2017 "she said no" that she never heard of this extension and to contact Revenue. Looking at Citizens information it says it will be extended until 2017 (for anyone who bought in 2004). Has anyone had the same experience? Ranger

Click to expand...

You get 7 years TRS relief - so you have gotten your 7 years - 2004,2005,2006,2007,2008,2009 and 2010. You don't get an extra 7 years because the scheme is extended until 2017 ranger. The extension is not giving more than 7 years to people it is only relevant if for example you bought in 2010 now there is enough time til 2017 to get the full 7 years relief.

This is direct from the revenue website so, yes you will qualify for the relief until 2017



Amount of Relief Available

2009: From 1 January 2009, First-time buyers - the rate of mortgage interest relief is increased from 20% to 25% in years 1 and 2 and to 22.5% in years 3, 4 and 5. The relief remains unchanged at 20% for years 6 and 7 of the mortgage. First time buyers relief ends after year 7.
Non-first time buyers - the rate of mortgage relief is reduced from 20% to 15%.
2010: Qualifying loans taken out before 1 July 2011 will continue to get relief for 7 years. Transitional measures will be provided for qualifying loans taken out between 1 July 2011 and the end of 2012.
2011: Loans taken out from 1 January 2004 to 31 December 2011, subject to qualifying loan criteria, are eligible for TRS Mortgage interest relief until 31 December 2017.
Those whose entitlement to relief would, in the absence of this change, expire in 2010 or after, will continue to qualify for relief at the applicable rate up until the end of 2017.
The relief will be abolished completely by the end of 2017.
For more information see leaflet: Tax Relief at Source (TRS) for Mortgage Interest Relief.
Relief available for loan interest on secured and unsecured loans for the tax years 2010 and 2011 Personal CircumstancesFirst Time BuyersAll OthersSingle€10,000 €3,000Married/Widowed €20,000€6,000
Note: Amounts shown in the above table are the ceiling amounts for the years 2010 and 2011
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My reading of the rates here would indicate that you are still entitled to TRS.

Assuming you were first time buyer in 2004 then rates of relief are:
2010 20%
2011 15%
2012 15%
2013 15%
2014 15%
2015 15%
2016 15%
2017 15%
2018 0%

If non first buyer:
2010 15%
2011 15%
2012 15%
2013 15%
2014 15%
2015 15%
2016 15%
2017 15%
2018 0%

Without the change in the Supplementary Budget 2010 your TRS would have ended at the end of the 2010 tax year (31 Dec 2010). The budget however extended the scheme up to 2017 as a measure to aid those in negative equity (i.e. anyone who bought 2004 to 2008/9).

guys - I'm closing this as the question has been answered.

ranger needs to contact revenue who should inform him better than a bank employee as he is entitled to TRS till 2017 as of current finance bill.