PTSB Tax Relief At Source

mothere

Just curious if anyone else has had their mortgage increase this month due to a change in the amount of tax relief deducted at source? I am a PTSB customer & wondering is it just them or all banks that have changed the tax relief at source? All this on top of a possible interest increase:mad:

futurefarmer

Yeah its because the goverment reduced the interest relief a lil, im with INBS and they notified us the first week in January, not a huge increase but i have a relitively small mortgage thank god

chris85

mothere wrote: »

Just curious if anyone else has had their mortgage increase this month due to a change in the amount of tax relief deducted at source? I am a PTSB customer & wondering is it just them or all banks that have changed the tax relief at source? All this on top of a possible interest increase:mad:

The goverment changed this, not PTSB, and same with everyone else getting TRS also unfortunately.

Cantona's Collars

Got my letter about this today,small amount but it all adds up along with interest rate rises.:(

Officer Giggles

got no letter but sure as hell noticed it, im with AIB

Jannise

Where can you read about what was changed in the last budget?
Revenue website has no info about it, just the changes from 2009.

I am in my 2nd year only, and it wasn't suppose to be changed till the start of the 3rd year, but just got a letter from mortgage provider.

Jannise

Accordint to the Revenue:
Finance Act 2010
The Finance Act 2010 intoduced the following changes:
Mortgages taken out between 1 January 2004 and 31 December 2011 will continue to qualify for mortgage interest relief at current levels up to the end of 2017.

Mortgages taken out between 1 January 2012 and 31 December 2012 will attract lower rates of mortgage interest relief up to the end of 2017, and the maximum amounts of qualifying interest will be reduced.

• The rates of relief will be 15% for first-time buyers and 10% 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.


So, how come, that the budget didn't introduce any changes, but the bank did?

and the funnies thing: just called my bank. Their working hours are till 8pm, but the offices are closed.

chris85

Jannise wrote: »

Accordint to the Revenue:
Finance Act 2010
The Finance Act 2010 intoduced the following changes:
Mortgages taken out between 1 January 2004 and 31 December 2011 will continue to qualify for mortgage interest relief at current levels up to the end of 2017.

Mortgages taken out between 1 January 2012 and 31 December 2012 will attract lower rates of mortgage interest relief up to the end of 2017, and the maximum amounts of qualifying interest will be reduced.

• The rates of relief will be 15% for first-time buyers and 10% 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.


So, how come, that the budget didn't introduce any changes, but the bank did?

and the funnies thing: just called my bank. Their working hours are till 8pm, but the offices are closed.

when it says current levels the actual level changes each year on a sliding scale. TRS reduces as the years go on

http://www.revenue.ie/en/tax/it/reliefs/tax-relief-source-mortgage-rates.html

Seriously do homeowners not look at this when taking out their mortgage?

Dabouche

TRS is based on the amount of interest that you pay each year. Each year as you go further into the term of your Mtg you are slowly reducing the principal amount that you owe and therefore each year when banks are calculating your interest due for the year it will be less than the year before. The revenue base their TRS calculations on this figure, AFAIK. You can expect every Jan for the amount of TRS that you are going to receive to decrease, even while you might remain in the same TRS band.

In relation to the TRS bands they go by tax year and not from the date that you took out the MTG.

Thats the way I have always understood it to work anyway

transam

we are with ptsb to and we got the same letter , our went up by 150euro a month , rang the revenue and they claim we should be getting the same trs as before, and the bank claims the revenue , sick of it
see post - tracker mortgage going up below

Jannise

chris85 wrote: »

when it says current levels the actual level changes each year on a sliding scale. TRS reduces as the years go on

http://www.revenue.ie/en/tax/it/reliefs/tax-relief-source-mortgage-rates.html

Seriously do homeowners not look at this when taking out their mortgage?

I definatelly know that, but i still have to be on the same scale, because my first two years are not over yet.

Jannise

Dabouche wrote: »

TRS is based on the amount of interest that you pay each year. Each year as you go further into the term of your Mtg you are slowly reducing the principal amount that you owe and therefore each year when banks are calculating your interest due for the year it will be less than the year before.

it is generally right, but as my interest rate goes up, i am paying more interest now, than last year, so my TRS should be the same, but it is not.
It is only 13 euro, but i am just trying to undestand the system.
The revenue are saying, that first two years of 25% TSR are applicble from the date you take the mortgage, but i do not trust them. Sometimes they are not sure what they are talking about.

Dabouche

If your interest rate goes up then the amount of interest that you receive is recalculated. Your MTG provider should be able to give you those figures so that you can compare.

TRS is applied by tax years, not from when you took it out. If I took out a MTG in Nov 2010 I am already in Year 2 Tax bracket. This isn't your banks decision, its the way Revenue work it.

transam

what happens when bank blaims the revenue and the ravenue the bank?? who is wright? none of them can give u a strait answer , what u do then?

Jannise

transam wrote: »

what happens when bank blaims the revenue and the ravenue the bank?? who is wright? none of them can give u a strait answer , what u do then?

It is exactly my point. Bank is saying one thing, which completely contradicts the facts, that Revenue are quoting. I would imagine that revenue should be the one who is right, BUT i work in finance industry and i know for sure, some people who work there are completely incompetent, so do not rely on them.

Jannise

Dabouche wrote: »

TRS is applied by tax years, not from when you took it out. If I took out a MTG in Nov 2010 I am already in Year 2 Tax bracket. This isn't your banks decision, its the way Revenue work it.

thanks that is what i suspected