TRS first time buyer question

John Mason

I searched the forum but i couldnt find this question asked anywhere else - sorry if it has been asked already.

i bought in 2004 and am entitled to the new TRS of 30%.

this is being sorted out by the Revenue at the moment and there has been some confusion, and i havent received my TRS since last September.

I was wonder how it is worked out - 30% of what? the monthly payment, amount due, yearly payment, interest ?

thanks

seamus

TRS is worked out on the yearly interest repayment. So you take the total interest to be paid in the year and you get 30% of that back.

There are ceilings - you can only claim the 30% relief on the first €10k of interest paid.

So if, for example, your monthly repayment is €1500, and €1,000 of that is interest. This means that you will pay €12k in interest. But you can only get relief on the first €10k, so you get €3k back in TRS.

I'm not sure if there's any set way that the banks work out/pay the TRS. They could choose to pay TRS until you've hit the ceiling;
In the above example, you will hit the ceiling (i.e. you will have paid €10k in interest) at the end of October. So the bank gives you no more TRS until January rolls around again.

In my case, the bank seems to work out what my interest repayments will be for the whole year and then spreads my TRS out across all repayments.

John Mason

thanks Seamus, that it really clear and simple