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04-02-2012, 11:37   #1
Thoie
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Mortgage Interest Relief - couples versus individuals

I'm just trying to get my head around mortgage interest relief differences for first time buyers, and the impact of being married/single.

From http://www.revenue.ie/en/tax/it/reli...age-rates.html

Using the example of a home bought in 2006, a single person will get 30% relief with a ceiling of 10k. A couple will get 30% relief with a ceiling of 20k.

First off, let's say the homes cost the same amount - why does a couple (with 2 potential incomes) get more relief than a single person with a single income? Surely the single person could be struggling more than the couple?

Secondly, what do changes in circumstances mean - what if you became a couple after purchasing, or split up - does the interest relief ceiling change at that stage?
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08-02-2012, 21:33   #2
killers1
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Quote:
Originally Posted by Thoie View Post
I'm just trying to get my head around mortgage interest relief differences for first time buyers, and the impact of being married/single.

From http://www.revenue.ie/en/tax/it/reli...age-rates.html

Using the example of a home bought in 2006, a single person will get 30% relief with a ceiling of 10k. A couple will get 30% relief with a ceiling of 20k.

First off, let's say the homes cost the same amount - why does a couple (with 2 potential incomes) get more relief than a single person with a single income? Surely the single person could be struggling more than the couple?

Secondly, what do changes in circumstances mean - what if you became a couple after purchasing, or split up - does the interest relief ceiling change at that stage?
It doesn't make a difference whether you are single or a couple the relief is the same i.e. ceiling of €10k each. That means that someone who is single and has a mortgage get mortgage relief up to €10k. Where there is 2 people the ceiling goes to €20k or €10k each. It's not that the couple get more relief than a single person it's more that every person gets the same relief so if a mortgage is in joint names both parties are entitled to the same relief as the single person.

In relation to the second part of your query only parties to the mortgage are entitled to TRS, so even though you are a couple living in the one house the mortgage interest relief is only applicable to the person who is named on the mortgage.
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10-05-2012, 23:21   #3
Enquirer2011
 
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Mortgage Interest Relief and Impact of Getting Married

Hi, I am currently considering buying a house. I am a first time buyer in my own right. I am however due to get married in 2 months. My fiance has a house so is therefore not a first time buyer. I am trying to understand whether it is better for me to purchase the new house in my own name (ie FTB and get the 25% rate, 10k celing) or to purchase the house in our joint names (get lower mortgage interest relief?) I find this all confusing, could someone please clarify what the two scenarios are? Many thanks
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