TRS Mortgage Interest Tax Relief in Ireland

MORTGAGE TAX RELIEF IRELAND

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Unlike the UK - mortgage payers in Ireland can still get tax relief on mortgage interest payments. Known as MIRAS in the UK - where it was abolished years ago.
It is known as Tax Relief at source or TRS in Ireland.

Mortgage Tax Relief or TRS can be claimed in respect of qualifying loans secured on the deeds of your main residence i.e. a new mortgage, a top up loan, a home improvement loan, a re-mortgage or a consolidation of existing borrowings.
The mortgage tax relief element on the mortgage interest is given, by your lender, either in the form of a reduced mortgage payment or a credit to your funding account. You can also claim mortgage tax relief in respect of a mortgage paid by you for your separated/divorced spouse, and a dependent relative (i.e. widowed parent, elderly relative) for whom you are claiming a dependent relative tax credit.

From 1st January 2009, the rate of tax relief for first time buyers increased from 20% to 25% in years 1 and 2 of the mortgage and to 22.5% in years 3, 4 and 5. This change benefits first-time buyers who purchased since 1st January 2005. The rate for years 6 and 7 remains at 20%. First time buyers relief ends after year 7.
The tax relief for non first time buyers is reduced from 20% to 15%.

Go here for the find the lowest mortgage rates in Ireland -

In the Supplementary Budget April 2009 it was announced that from 1 May 2009 mortgage interest relief will be discontinued for any mortgage over 7 years. This means that tax relief is available on the interest payments for the first 7 years of your mortgage but it is not available for the 8th and subsequent years of your mortgage . There are some problems with this though - Mortgage Relief to be Stopped For Some

These are the liimits on the amount of tax relief that can be claimed in a year: (from Jan 2008)
For First Time Buyers
Single Person €2000 Married Couple - €4000
Non First Time Buyers
Single Person €1500 per year, Married Couple €3000

Time Limits on TRS

* If you took out a mortgage in 2003 or earlier, your entitlement to Tax Relief ended in 2009

* If the start date of your mortgage is between 1 January 2004 and 31 December 2011, your entitlement to relief will continue at the current rates until the end of 2017.

* If you take out a mortgage between 1 January 2012 and 31 December 2012 the rates will be 15% relief for first-time buyers and a 10% rate for non-first-time buyers. The maximum amounts of interest that will qualify for relief will be €6,000 for married or widowed people and €3,000 for single people. These ceilings will be the same for first-time buyers and non-first-time buyers.

* For mortgages taken out after 31 December 2012, no mortgage interest relief will be allowed.

TIP: Don't assume you will automatically get the relief. To ensure you get mortgage interest tax relief - you need to complete a form TRS1 form available from your mortgage provider or from Revenue.ie.
The TRS Helpline number is 1890 46 36 26

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