Mortgage Interest Relief - Dec 31st Cut-Off - Self Build

Mr. Incognito · 14-08-2014 01:11PM

I've had a cursory look at this.

As you say the section provides for relief on qualifying loans on qualifying premises.

It envisions relief for first time buyers on new builds.

If you are to build the house yourself then you would still qualify for the relief.

However the fact that you are gifted the site means that you did not use part of the qualifying loan to "buy" the premises or the footprint of the site.

You are arguing that building the house means to develop it. You are of course correct. However, it seems that the Revenue are rejecting it on the basis that you did not "purchase" the site.

I have also had a look at the 2013 Finance Act

http://www.irishstatutebook.ie/pdf/2013/en.act.2013.0008.pdf

At page 13 it says that the money must be used

(7) This subsection shall apply to a loan taken out and used
by an individual––
(a) on or after 1 January 2012 and on or before 31
December 2012 solely for the purpose of defraying
money employed in the purchase of an estate or
interest in the land referred to in paragraph (b) and
in respect of which the permission in subsection (10)
applies but only where a residential premises, which
is a qualifying residence in relation to that individual,
is constructed on that land, or

THIS WOULD APPEAR TO MEAN THAT THE MONEY MUST BE USED FOR THE SOLE PURPOSE OF PURCHASING THE HOUSE or

(b) on or after 1 January 2012 and on or before 31
December 2013 solely for the purpose of defraying
money employed in the construction of a residential
premises which is a qualifying residence in relation
to that individual on land––

SOLEY FOR CONSTRUCTION

I don't have time for a more in-depth analysis but I am unsure how Revenue are saying that it is a requirement under the 2013 FA that the money must be used to purchase some element of the site. You would appear to qualify if you either purchase or build.

FFM01 · 09-09-2014 10:56AM

Hi All,

Just wondering has anyone any update or been successful in arguing this with Revenue?

Has anyone proceeded to appeal this with the Appeal Commissioners yet?

I believe we have a strong argument.

psmb · 23-09-2014 03:51PM

FFM01 wrote: »

Hi All,

Just wondering has anyone any update or been successful in arguing this with Revenue?

Has anyone proceeded to appeal this with the Appeal Commissioners yet?

I believe we have a strong argument.

I am in the process of going through the appeal process. I will let you know how it goes.
I have also lodged a complaint with the ombudsman.

barneystinson · 23-09-2014 04:00PM

psmb wrote: »

I am in the process of going through the appeal process. I will let you know how it goes.
I have also lodged a complaint with the ombudsman.

Why have you lodged a complaint with the ombudsman, out of interest?

FFM01 · 18-11-2014 06:05PM

Hi,

Just wondering has anyone any update on this? Has your case been heard by the Appeal Commissioners yet psmb?

We are still restricted on our full TRS, they are not even giving us the 25% of our TRS which we are entitled to?

Any update would be great.

psmb · 19-11-2014 03:51PM

Hi FFM01

I still have not had a response from the appeal Commissioners. I am hoping to hear something soon and when I do I will post here.

Since I posted last I have been looking at the Taxes Consolidation Act 1997

Point 7 below states that you have to have acquired an estate or interest in a site, and the acquisition had to be financed by way of the loan referred to in paragraph A, it does not state that you have to have purchased the site.

I believe been gifted a site is acquiring and interest in the site. Am I wrong on this? Does anyone have a definition of "acquiring an interest in a site"

The Notes for Guidance – Taxes Consolidation Act 1997 – Finance (No.2) Act 2013 Edition - Part 8 states the following.
(9.—Section 244 of the Principal Act is amended by inserting the following after subsection (6):
“(7) This subsection shall apply to a loan taken out and used by an individual––
(a) on or after 1 January 2012 and on or before 31 December 2012 solely for the purpose of defraying money employed in the purchase of an estate or interest in the land referred to in paragraph (b) and in respect of which the permission in subsection (10) applies but only where a residential premises, which is a qualifying residence in relation to that individual, is constructed on that land, or

(b) on or after 1 January 2012 and on or before 31 December 2013 solely for the purpose of defraying money employed in the construction of a residential premises which is a qualifying residence in relation to that individual on land––
(i) in respect of which he or she has, on or after 1 January 2012 and on or before 31 December 2012, acquired an estate or interest, and
(ii) the acquisition of which was financed by way of the loan referred to in paragraph (a).

FFM01 · 26-01-2015 06:26PM

Hi psmb,

Just wondering have you any update from the Appeal Commissioners yet?

Regards

Augusta11 · 27-01-2015 01:31PM

Hi all,

Just a quick update on my situation.

I contacted a well known newspaper reporter to see if they could advise me on this situation. They contacted Revenue on my behalf. They forwarded on the email relpy from Revenue but basically it was very similar to the reply I've had from Revenue last year. Revenue have to follow the legislation so therefore we do not qualify for trs as we did not purchase our site with part of the loan.

The newspaper reporter has advised me to make a complaint to the appeals commisioners but i don't really know if there is any point trying to keep this up as Revenue aren't budging at all

psmb · 24-02-2015 05:20PM

Hi FFM01

I am still waiting to hear from the Appeal Commissioners. I will post once I do. Don't hold your breath.

psmb · 09-12-2015 02:01PM

For anyone interested, I am still waiting for my appeal to be heard.

Mortgage Interest Relief - Dec 31st Cut-Off - Self Build

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