TRS

montzarella · 30-12-2011 10:16am #1

Hi all,

I got a letter from my bank yesterday advising me that my new TRS credit is only €62.50 per month... this means that my monthly mortgage repayment goes up from €995 to €1102 per month.

I know there were changes in the budget but I thought I would qualify for 30%, and I am getting the lower rate. I bought my house in 2008 and am a first time buyer??? This is taken from the Citizens Information website:

Changes in Budget 2012 Budget 2012, which was announced in December 2011, changes the rules on mortgage interest relief as follows:

First-time buyers in 2012 will get mortgage interest relief at a rate of 25% for the first 2 years, reducing after that
Non-first-time buyers in 2012 will get mortgage interest relief at a rate of 15% from 2012 until 2017
A special rate of 30% for the tax years 2012 to 2017 is introduced for first-time buyers who took out mortgages in the years 2004 to 2008

It looks to me as if they have applied the wrong TRS credit (well im hoping that they have)? I was on a 3 year fixed from March 2008 to March 2011, and then i fixed it again in march 11 to march 2014. im really hoping this is a mistake.

rameire · 30-12-2011 1:11pm

the new trs payment details have probably not fed into the banks mortgage system yet. if it is not corrected for your jan payment it should feed in correctly for the feb payment, and the underpayment for jan should be redistrubuted throughout the rest of the year.

Gareth2011 · 30-12-2011 1:17pm

There is already a thread on this. Look at this
http://www.revenue.ie/en/tax/it/reliefs/tax-relief-source-mortgage-rates.html If your married or single the rates are there. For your instance (Married) you will get the 30% at higher rate untill 2014. Then the 30% at the lower rate from 2014 untill 2017. Its all on the above page.

montzarella · 30-12-2011 1:39pm

but given that i have already received a letter from the bank telling me what my tax relief for the year is, doesnt it mean that they have already decided it? I will probably need to call the tax office to have it changed.

im single, the mortgage is in my name only

rameire · 30-12-2011 1:46pm

The bank may be using the old details they have on their system to generate the letter. So it till could update

Gareth2011 · 30-12-2011 2:20pm

montzarella wrote: »

but given that i have already received a letter from the bank telling me what my tax relief for the year is, doesnt it mean that they have already decided it? I will probably need to call the tax office to have it changed.

im single, the mortgage is in my name only

You don't need to contact the tax office about your trs the bank does that with revenue themselves. The new rate of 30% hasn't kicked in yet and wont untill 2012 but when in 2012 if not known. They haven't given a date yet :mad:. But as rameire said when ever it is brought in the rate will be redistributed for the remainder of the year.

If your single then you will get 30% of the single rate (10,000 yearly) for 2012, 2013 and 2014. Then 30% of (3,000 yearly) for 2015, 2016 and 2017. In 2018 TRS is abolished altogether so no one gets its unless its changed again by either this or next government and I can't see that happening, its costing them a fortune :eek:

TRS

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