Mortgage Interest Tax Relief at Source (TRS)

Information Leaflet: Mortgage Interest - CG13 - Tax Relief at Source: available in seven languages: Irish, English, Polish, French, Latvian, Lithuanian, Simplified Chinese

 

             

Introduction

Since 1st January 2002, tax relief for home mortgage interest (known as TRS) is granted at source by the mortgage lender. Previously this relief was given through the tax credit system. Under TRS, the mortgage lender gives the relief either in the form of a reduced monthly mortgage payment or a credit to the borrowers funding account.

All individuals who purchase a qualifying mortgage on their main residence are entitled to apply to the Revenue Commissioners to have mortgage Tax Relief on the interest charged/paid on their qualifying mortgage applied at source by the lender.

Qualifying loan for mortgage TRS

A qualifying loan for mortgage TRS purposes is a secured loan, used to purchase, repair, develop or improve an individual's sole or main residence, which must be situated in the State. An individual can also claim relief in respect of a mortgage paid in respect of a separated/divorced spouse and/or a dependent relative for whom a dependent relative tax credit is claimed. TRS cannot be claimed in respect of an investment property.


Ceilings or upper limits for mortgage tax relief

Mortgage TRS is calculated on the interest charge/paid on a qualifying mortgage subject to certain ceilings or upper limits. The current ceilings for mortgage interest relief for single, married or widowed persons are outlined in Table 1, below. It is important to note that the upper limits for first-time buyers apply for the tax year in which the mortgage is taken out plus six subsequent qualifying tax years.

 

Table 1. Ceilings or Upper limits

	First Time Buyers		All Others
	To 31/12/06	From 01/01/07	To 31/12/06	From 01/01/07
Single Person	€4,000	€8,000	€2,540	€3,000
Married/Widowed	€8,000	€16,000	€5,080	€6,000

 

The ceilings are applied at the standard rate of 20%.
Details of the actual relief are outlined in Table 2.

 

Table 2. Maximum TRS allowances

	First Time Buyers Maximum TRS Relief (per annum)		All Others Maximum TRS Relief (per annum)
	To 31/12/06	From 01/01/07	To 31/12/06	From 01/01/07
Single Person	€800	€1,600	€508	€600
Married/Widowed	€1,600	€3,200	€1,016	€1,200

TRS1 form

The application form used to claim mortgage TRS is a TRS1 form. This form must be completed in order to receive mortgage TRS. You can complete this form by applying online Click here to Apply Online.

Alternatively, you can submit a TRS1 form. A TRS1 form is available

1. by downloading the TRS1 form Click here to download a TRS1 form,
2. from your mortgage lender or
3. by telephoning the TRS Helpline on 1890 46 36 26.

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