Is there a limit on the amount of mortgage interest relief payable per property?

fe1sagain

Hi,

My question is whether there a limit on the amount of mortgage interest relief payable per property? I looked at the revenue website but I couldn't find a concrete answer.

The website says the following;
"Mortgage interest relief must be claimed online. A married couple may submit their details online on the same application. In all other cases of joint borrowings, each claimant should submit their details online separately."

Does this mean that each claimant will be entitled to a maximum of x amount per year for the 7 years or is there a limit on the amount payable per year which is then split between mortagor?

"You do not have to be earning a taxable income to qualify for mortgage interest relief."

Another quick question in relation to above - Does one have to be working/earning to qualify for the relief or can unemployed/student claim the relief provided they are a mortagor?

Any help greatly appreciated!

Mr. Incognito

Per property?

It's only on your Principal private residence- ONE property.

Married persons are jointly assessed in which case they are one person for tax purposes. If they elect to be seperately assessed the relief is still granted at source and is not split between them i.e Granted at source regardless of tax situation.

fe1sagain

I understand it's only on PPR but was wondering was there a limit to the relief on the PPR - could 4 friends who are first time buyers get the relief after they purchase a house to live together. This would be their PPR. Would the mortgage interest relief be paid to each of them or is their a max number of people who can claim the relief on the PPR e.g. 2 people or married couple

My other question was whether you have to be employed but from what I have seen on other threads you can get the relief while unemployed so I presume a student can get the relief (not that many students have a mortgage).

Mr. Incognito

If 4 persons all chipped in and got a house and it was all their PPR (an unlikely scenario) the tax would be granted at source. i.e at the bank and their tax positions don't matter.

I think you have it in your head that the persons get tax relief and it follows them.

Would the mortgage interest relief be paid to each of them

It is not a "repayment". It is a reduction in the premium paid BY the mortgage holder not TO him.

It doesn't. It is like health insurance tax relief. If you qualify it is applied at source, i.e incorporated into the reduced repayments.

kennyb3

Mr. Incognito wrote: »

If they elect to be seperately assessed the relief is still granted at source and is not split between them i.e Granted at source regardless of tax situation.

Mr. Incognito wrote: »

It doesn't. It is like health insurance tax relief. If you qualify it is applied at source, i.e incorporated into the reduced repayments.

There are many cases where it is not applied at source by banks for any number of reasons.

In this case someone can claim by:

a) registering the mortgage account online at www.revenue.ie

Then filing a TRS1P for any prior years were it has not been granted.

Might help someone out.

fe1sagain

Thanks for the help!