Can anyone help with this mortgage tax relief issue?

sprat

Hi guys,

I'd greatly appreciate your opinions on this, specially of those of you with a good know-how of taxes / law.

My wife used to live in Ireland, bought a house there with her ex. During the first three years after the purchase, she had the mortgage tax relief, but then she relocated to Spain. Before leaving the country she gave notice to the revenue office so they could update their data and mark her as non tax payer.

The surprise came later when she found out she was still getting the relief. Oddly enough, her ex was not so it she chalked it down to some administration error. She kept it quiet (yes, I know that was wrong). All this time, the house has been rented to some friends of her.

The problem now is we both want to relocate to Ireland, but she is worried that once she starts working there again and paying taxes they'll find out about the relief. So, my questions for you are,

1. what do you think are the chances of revenue finding out about this and if they do what would be possible outcomes?

2. is there anything we can do to solve the situation? she doesn't want to move before January because this is the 7th and last she'll get the relief, so maybe from next year she will be less likely to attract attention, do you think this might work?

Thanks for your help, any input will be appreciated.

Doom

I would think if the mortgage is held in Ireland from an Irish bank you would be entiled to the relief, open to correction on this......

relax carry on

sprat wrote: »

Hi guys,

I'd greatly appreciate your opinions on this, specially of those of you with a good know-how of taxes / law.

My wife used to live in Ireland, bought a house there with her ex. During the first three years after the purchase, she had the mortgage tax relief, but then she relocated to Spain. Before leaving the country she gave notice to the revenue office so they could update their data and mark her as non tax payer.

The surprise came later when she found out she was still getting the relief. Oddly enough, her ex was not so it she chalked it down to some administration error. She kept it quiet (yes, I know that was wrong). All this time, the house has been rented to some friends of her.

The problem now is we both want to relocate to Ireland, but she is worried that once she starts working there again and paying taxes they'll find out about the relief. So, my questions for you are,

1. what do you think are the chances of revenue finding out about this and if they do what would be possible outcomes?

2. is there anything we can do to solve the situation? she doesn't want to move before January because this is the 7th and last she'll get the relief, so maybe from next year she will be less likely to attract attention, do you think this might work?

Thanks for your help, any input will be appreciated.

As she is a non resident landlord she should have not been in receipt of TRS.

How was she returning the rental income?

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21

sprat

Doom wrote: »

I would think if the mortgage is held in Ireland from an Irish bank you would be entiled to the relief, open to correction on this......

Thank you, I'm not too sure about that since she has not been paying taxes ...

sprat

relax carry on wrote: »

As she is a non resident landlord she should have not been in receipt of TRS.

How was she returning the rental income?

http://www.revenue.ie/en/tax/it/leaflets/it70.html#section21

Well that's right, actually the tenants could have applied for the relief instead of her. I'll tell her, thank you.

Mr. Incognito

Och can of worms.

Get thee to a professional. If she bought pre 2007, availed of first time stamp duty relief and it wasn't her PPR for 5 years technically the Stamp duty relief is repayable.

Now, they don't generally open assessments 4 years down the line but anything is possible in the current environment.

ANYWAY, Specific advice and property advice are banned.

Locked