Mortgage Interest Relief Query

soupdrinker

Hi

Just have a quick query re Mortgage Interest Relief.

Myself and the OH bought a house in 2008 - both FTB's. In 2011 we paid approx €11K interest on our mortgage.

As we were both FTB's we should be entitled to the maximum Tax Relief of 30% up to a ceiling of €20K - €10K is this correct?

Does this mean we should have got back 30% of the €11K interest paid - approx €3,300 or approx €275 per month??

Thanks for your help

Thoie

The 30% came in in budget 2011, applicable to 2012, so you won't get last year's back, but you should get it this year. Have you been getting interest relief all along? If so, you don't need to do anything.

If you never registered for TRS, you can do so here: http://www.revenue.ie/en/online/mortgage-interest-relief.html

soupdrinker

Sorry my apologies. Was trying to find the rates for 2011.

So correction, our rate should have been 22.5%? So we should have received 22.5% of the €11K - approx €2475 or €206 per month.

we have been receiving the Relief all along but just want to check we have been receiving the correct amount.

I have noticed no major increase in what I have been getting in 2012 though - must dig out my bank statements!

maw

http://www.irishtimes.com/newspaper/frontpage/2012/0204/1224311251776.html

not sure if this has been amended yet

thebiglad

I am with Ulster Bank and phoned them 2 weeks ago - they told me that in fact the Finance act for TRS amended figures has not yet been passed into law.

Anyone know if this is actually correct or, should I simply be giving the bank a much harder time.

Find them extremely unhelpful - perhaps I should just stop paying the mortgage to get their attention, if you simply pay up they want nothing to do with you!!

Daxve

The Finance Act 2012 was signed into law by the President on the 31st of March (including the relevant TRS sections) the Bank is lying to you.
Page 23 section 9 http://www.oireachtas.ie/documents/bills28/acts/2012/a912.pdf
http://www.oireachtas.ie/viewdoc.asp?fn=/documents/bills28/bills/2012/0512/document1.htm

A lot of the banks have still to update the TRS rates even though Revenue have already sent them all the relevant details. Next they will tell you it's nothing to do with them and you should be contacting Revenue this is also incorrect it's now up to the banks to implement the new rates Revenue will just refer you back to the bank who will try and refer you back to Revenue again.

evolving_doors

Anyone know when the backdated amount is 'eventually' given will it reduce the principal or the interest?

thebiglad

Thanks, let battle begin then