Mortgage Interest?

1. What is Tax Relief at Source (TRS)?
2. What is a Qualifying Loan for TRS?
3. How do I apply for TRS for the Current year?
4. How do I obtain the TRS1 form?
5. When should I apply for TRS?
6. How long does it take for TRS to commence on my mortgage?
7. Do I need to apply for TRS every year?
8. How is my relief calculated?
9. What ceilings are available for TRS relief?
10. I am not working. Am I entitled to TRS?
11. What do I need to do if I change the current account which my mortgage payment is made from?
12. How do I claim for previous years?
13. I own two properties which I split my time between for work commitments. Can I claim TRS on both?
14. I have an Investment property. Can I claim TRS on this property?
15. I will be moving away for work and intend to rent my house out, can I still claim TRS?
16. What are the implications for my TRS relief if part of my mortgage is used to finance non-house expenditure i.e. holiday, car, education etc?

Tax relief for home mortgage interest (known as TRS) is now given at source. There is no change in the qualifying conditions for tax relief. The 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. It is not necessary to claim mortgage interest relief in the annual tax return, and it no longer appears on your Notice of Tax Credits.

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A qualifying loan for the purpose of TRS is a secured loan, used to purchase, repair, develop or improve your sole or main residence, situated in the State. You can also claim relief in respect of a mortgage paid by you for your separated spouse, and a dependent relative (i.e. widowed parent, elderly relative) for whom you are claiming a dependent relative tax credit. 

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You apply by completing a TRS1 form or make your application online. This can be done in respect of a new mortgage, a top up loan, a home improvement loan, a re-mortgage or a consolidation of existing borrowing. It is sufficient for a married couple to complete one form. In all other cases of joint borrowings, each claimant should complete a TRS1 form. Click here to Apply Online.

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The TRS1 form will be issued by the lender or by telephoning the TRS Helpline on 1890 46 36 26 or online at www.revenue.ie.

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You should complete the TRS1 form as soon as you have commenced repayments on your loan. Click to apply online

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It can take a period of up to 8 weeks for the relief to be applied to your mortgage, the reason for the delay is that your mortgage details have to be processed and advised to your lender in advance. (If you apply during the year in which you take out the loan, your lender will pay any arrears for that year that are due to you.)

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No. You only need to complete an application if any of your mortgage details change. If your mortgage remains the same, your lender will continue to apply the relief automatically each year.

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You can only get relief on the interest charged/paid on your mortgage. The actual relief you receive is dependant on the ceiling or upper limit allowable.

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The ceilings that are available for TRS, are dependant on the status of the individual, that is, whether they are married or single and whether they are first time buyers or not. 

The ceilings are applied at the standard rate of tax and the maximum actual TRS relief available is limited.

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Yes. The introduction of TRS extended mortgage interest relief to non-taxpayers. Since 2002, you do not have to be earning a taxable income to be eligible for TRS.

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If your lender pays your TRS by way of a credit into the current account, you should contact them to ensure that they have the correct current account number on record. You do not need to notify Revenue.

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To claim for 2010, you complete a 2010 Claim Form, and send to: Office of the Revenue Commissioners, Collector Generals Division, TRS Section, Sarsfield House, Francis Street, Limerick. A photocopy of the certificate/statement of loan interest paid in 2010, must be attached to the claim form.

Non-taxpayers can claim for the year by forwarding their statement of interest for 2002, together with a covering letter to the Office of the Revenue Commissioners, Collector Generals Division, TRS Section, Sarsfield House, Francis Street, Limerick.

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No. In this case, you should nominate which property is your principal private residence and claim TRS on that mortgage.

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No. TRS only applies to a loan which is in respect of your principal private residence. You should not complete a TRS1 form for an Investment property. Mortgage relief for rental properties is available through the tax system and you should contact your local tax office.

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No. As the house would no longer be your principal private residence, you would not be entitled to TRS. See previous question for details of how to claim, once the property has been rented out.

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The full interest incurred by you will not be eligible for TRS in this instance. You will be obliged to calculate the proportion of the mortgage that is applicable to your home, and insert this percentage on the box provided on the TRS1 form.

For example, let's assume you borrowed €200,000, and €30,000 is being used for non-house purposes, the percentage of your loan that qualifies for TRS can be calculated as follows:

Percentage of loan eligible for TRS = €170,000 divided by €200,000 = 85%

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You must insert 85% in the 'qualifying percentage' box on the TRS1 form.