TRS mortgage interest relief question

mikelovenotwar

So after drawing down our mortgage in December the house purchase was delayed and wasn't completed until early 2013. We applied for TRS and are receiving it at present. It has been brought to my attention that we possibly aren't entitled to TRS due to the fact that although the mortgage was drawn down to the solicitors client account, the sale was not completed before dec 31st.
Do you think this is correct?
Do Revenue carry out house purchase audits and what do you think would be the possible reprecussions from this?

Alan Shore

Think you might have an issue.

http://www.citizensinformation.ie/en/housing/owning_a_home/buying_a_home/mortgage_interest_relief.html

Deadline for new mortgages in 2012
Your entitlement to mortgage interest relief was dependent on the loan being drawn down and used in the purchase, repair, development or improvement of your principal private residence in 2012. It was not necessary to have made the first repayment on the loan in 2012. Interest accrues on the loan from the date the loan is drawn down and this interest qualifies for mortgage interest relief even if the first repayment was made in January 2013.

‘Drawing down’ a mortgage refers to the transfer of the money from the mortgage lender to you or to your solicitor. The money must have been paid to the seller or builder by 31 December 2012 for it to be considered as used in the purchase, repair, development or improvement of your principal private residence in 2012.