How do you calculate Rent Relief?

dellas1979 · 19-10-2006 9:28am #1

Could anyone please tell me how do you calculate tax relief?

Is it through your wages?

Thanks

Noelie · 19-10-2006 9:36am

I assume you mean mortgage interest tax relief, it's done at source, so where ever your mortgage is taken out of, that is where it goes back into. I can't remeber the exact numbers but I should get about 60Euro a month as does my girlfriend. but it is also back dated so if you take out a mortgage in the middle of the tax year you'll get a higher TRS payment, we paid our first payment in august so we are getting nearly 400 euro a month in TRS, but come january that will fall back to 120Euro. do a search and you'll get all the figures you need.

dellas1979 · 19-10-2006 9:39am

Sorry there, am so bad at these things. I mean rent relief.

Sorry didnt realise there until you said it.

Thanks for reply though.

Noelie · 19-10-2006 9:48am

Don't know about Rent relief, sorry

threebeards · 19-10-2006 9:51am

If you're a first time buyer, there's a max relief available of €4,000 per annum @ 20% for a single person and €8,000 for a married couple. What that means in terms of actual relief is this:

If you have say a €250,000 mortgage @ 4.5%, the amount of interest paid per annum is 250000 x 4.5% = €11,250. As a single person, the max allowable from that €11,250 is €4,000 @ 20% which is €800 per annum or €66.67 per month.

If you're married, the actual relief is €1,600/12 which is €133.33. Once processed, your lender will apply that relief to your repayments so based on the figures above over a term of 25 years your gross repayment would be €1,389.58 and net (single) would be €1,322.91 or €1,256.25 as a married couple.

The reliefs are reduced to €5,080 and €2,540 if you're not a first time buyer

Edit: Just saw your post about rent relief now.

BC · 19-10-2006 3:33pm

Rent relief for the current tax year is credits added to your tax cert.
Relief for previous years is paid by cheque.

Its calculated at the standard rate of tax (20%). For a single person under 55 the rent relief is 1650. So 20% of 1650 is 330 so you are entitled to a max credit of 330 euro for the year.

How do you calculate Rent Relief?

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