TRS Doubles in 2012 – Just not in January?

Mortgage TRS 2012

If you are looking for tax refunds, or stuff you can claim back this January, Budget 2012 had one important sweetener for a lot of mortgage holders.

If you took out your 1st mortgage between 2004 & 2008, you probably know by now that mortgage interest relief at source is being double from 15% to 30% in 2012.

With most of the Banks, the Tax Relief at Source (TRS) is seen as a separate payment into your bank account on the day the mortgage payment leaves. If you are not seeing a separate payment, do double check to make sure you are receiving it if it is due! But if not, you can look back 4 years for a refund of unpaid mortgage tax relief at source.

January 2012 payment

But don’t expect to see your TRS payment to your bank account increase in January, certainly didn’t happen in my own case.  I was surprised  to see that my own TRS payment dated 3rd January is unchanged from my December payment.

I am presuming that this is because the interest relief is granted in interest charged in 2012 , so the interest charged on my loan in December 2011 which is being refunded in 2012  is only relieved at the 15%.  so the interest relief is by charge date rather than pay date.

But there may also be a delay in banks implementing the change.  Let us know when you see a change in your TRS, particularly interesting in seeing if people with Mortgage dates mid month get extra relief.