When does TRS clock start?

Got 3 different answers when i rang revenue today. Its a disgrace that this is happening. I still dont know if we should draw down in Dec or not. Clearly, none of us here have full clarification.
 
I originally posted this piece in another thread a couple of weeks ago. It might help. I too, rang the Revenue about this issue and they simply couldn't give me a clear answer on it. The person on the phone didn't know and had to go off and ask somebody else about it. Worrying!

It's from the Irish Times Property Supplement (Q & A Section) from Thursday 13 November, on how much of the full 7 years higher rate of TRS you should get. The key line says that the date you draw down your mortgage is when TRS begins.

LINK: http://www.irishtimes.com/newspaper/property/2008/1113/1226408578767.html


When does tax relief on my mortgage start?

Q As a first-time buyer applying for my first mortgage, I believe you get TRS (mortgage interest tax relief at source) at a higher rate for seven years. If you draw down your mortgage in December and your repayments begin in January, when is your first year for TRS purposes? Is it December (thereby losing all of that year) or January, so gaining the benefit of the full seven years?

A What a timely question and well done for thinking ahead - it shows that long gone are the days when first-time buyers jumped in to a purchase before considering every possible angle. We put your question to financial advisor Liam Ferguson of Ferguson Associates and, according to him, TRS commences from the date you draw down your mortgage, so if you draw down in December, you lose all of 2008 and therefore have only six years TRS at the first-time buyer rates. He suggests that it would be worth while attempting to delay the drawdown until the new year, even it means you miss that psychological deadline of "being in for Christmas". This would seem to be good advice for buyers but more bad news for builders operating at that level of the market and looking at countless empty apartments and houses that are likely to remain so this side of Christmas, despite the good news for borrowers of interest rate falls.
Click to expand...
 
Yes, that's what revenue said. But added the ridiculous 'but you should be ok'.

How can they realistically hit you for a year's relief for 2008 if there was not 1cent due because there was no payment until January? Even Brian Cowen would be hard pushed to justify it!?
 
Reviving an older thread with a new query...

If George buys a site from the local authority to build his own property and the builder is paid in stages with a mortgage from the local authority; and George is repaying the local authority amounts relevant to the sum drawn down - would the TRS clock start from his first payment to the local authority? Bearing in mind that at that time there was no house to live in? First draw down was Nov 2003, house finished and moved into May 2004. George received TRS in December 09.
 
You must log in or register to reply here.
Back
Top