Tax Relief at source

mohenley

Hi

I wonder if someone could advise on the following query.
I have a property bought in 2007 of which I have never claimed tax relief at source for.

My husband has another property (since before we married) which he has not been able to sell since 2006 and as such has had to rent it out.

The question i have is if i apply for tax relief at source would we be worse off? The main home is in my name but the form ask for spouses mortgage as well so I am wondering would we end up paying more if i apply for Tax Relief?

Also, in the budget last year I think there was soe benefit for first time buyer (which I am), can I claim that in these circumstance?

The_Conductor

It depends on what your status was when the current property was purchased.

In theory- you can purchase property of your accord and claim TRS at the First Time Buyer rate (as a single person), providing your husband is not habitually resident in the property you purchased, and has not provided any finance towards the purchase of the property.

In practice- as a couple, it is virtually impossible to satisfy the Revenue Commissioners that you meet the criteria to be accessed as a first time buyer- when your spouse is in possession of another property- you will require professional advice on this- but it is highly unlikely that you will be successful.

If you purchased the property yourself- before you married your husband- its a lot easier to claim FTB status for the purposes of claiming TRS.

Its really a matter of timinig (you haven't indicated the timelines of when the different properties were purchased versus when you got married (and the criteria concerning financing of the properties).

sweetie

I was surprised to learn that by marrying me my wife has lost the ability to be a first time buyer. Not that she planned to but then ye never know. I changed mortgage in 07 without realising that one has to reapply for TRS and when I went to apply recently I was told that I have to give both our
details on the application.

The_Conductor

sweetie wrote: »

I was surprised to learn that by marrying me my wife has lost the ability to be a first time buyer. Not that she planned to but the ye never know. I chnaged mortgage in 07 without realising that one has to reapply for TRS and when I went to enquire recently I was told that I have to gie both our details
now.

She hasn't in fact lost the ability- however it would have to be proven that the property was purchased purely on her own cognisance, without assistance from you in any means, and that you had no beneficial interests in the property (which includes not living there, not supplying any of the capital towards the purchase or supporting the loan etc). It also cannot be your PPR.

The ability to claim first time buyer status has not in fact been lost- but the hoops that they make you jump through to exercise the option are very difficult to fulfill.

You do need proper professional advice on this......