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Interest Relief query

Discussion in 'Off Topic' started by Captain_Morgan, Mar 14, 2012.

  1. Captain_Morgan

    Captain_Morgan
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    Hopefully some of you financial whizz kids can help me out here.

    Got a letter off ptsb today saying i had a new repayment amount. Was a little shocked to say the least.

    Rang them up and the girl said my interest relief has been cut from €342 to €90 and she couldnt figure out why. Tried to get through to revenue but they had closed for the evening.

    Thought you were supposed to have this interest relief for 7 years ??
     
  2. SUPERFAN

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    Must be a mistake ger,if you weren't entitled to it any more it wouldn't be cut to €90,it'd be gone completely.
    Get on to the TRS section of revenue and they should be able to tell you what the story is.
     
  3. Captain_Morgan

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    Yeah bit strange alright willie, ill be onto them tomorrow, surely if there was a cut in my interest relief i should have been notified as well
     
  4. byrnetred

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    Ger your interest relief lasts 7 years but it's reduces over the years

    If you drew down your mortgage around this time of year then that's your answer
     
  5. Captain_Morgan

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    But could it reduce from 342 to 90 without notice?? Seems like a bit of a jump.

    1st mortgage was drawn down in oct 05 that was cleared in June 08.
    Then had a while renting
    2nd mortgage was drawn down in april 09.

    By my calculations ive had 5 1/2 years of relief so far
     
  6. byrnetred

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    Sorry I thought it reduced by 90 not to 90

    Yea that's a massive jump, something not right there

    I must check it out but didn't think you got mortgage interest relief on a 2nd mortgage
     
  7. Dub13

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    That was my understanding as well,I taught it was for first time buyers only.
     
  8. Captain_Morgan

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    No there is slightly different rates for first time and second time buyers
     
  9. ianmahony1977

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    Ger, because you were a first time buyer in 2005 your ceiling has dropped from €10000 to only €3000 at a rate of 30%

    10000 x 30% = €3000 per year max relief
    3000 x 30% = €900 per year max relief

    For anyone who bought first time in 2006 this drop will kick in next year

    edit: above is based on an individual, double the ceilings for married couple
     
    #9 ianmahony1977, Mar 14, 2012
    Last edited: Mar 14, 2012
  10. Dubred

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    Was this not extended in the budget ?
     
  11. Captain_Morgan

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    yeah but im a second time buyer since 09??
     
  12. ianmahony1977

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    From memory i think thats still €3000 ceiling and 15% relief, best to get it from horses mouth tomorrow
     
  13. Garrett

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    Ger,

    Did you take out any top up loans after getting your second mortgage, perhaps equity release or loan for home improvements, extension etc ?
     
    #13 Garrett, Mar 14, 2012
    Last edited: Mar 14, 2012
  14. Captain_Morgan

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    no mate
     
  15. Captain_Morgan

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    Mystery solved

    I took out my first mortgage in oct 05 so from that date i had 7 tax years of relief from then, they dont even take into account the fact i rented for a year between buying my second house, and the 3 months in 05 count as a full tax year, so i had 7 tax years of relief.
    05-11

    Ah well it was good while it lasted
     
  16. Garrett

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    Sorry pal,

    I was kinda hoping they were going to have to tell you they'd made a mistake and throw some dosh your way :)
     

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