Claim extra tax relief at source benefits.

sunday times

So you bought a house, took out a mortgage, met a girl/boy and get married. Congrats! not only can you now receive the benefit of being taxed as a married couple, but you should also think about how this affects the mortgage interest relief you receive at source each month.

First Time Buyer

Where your new spouse was not registered on the house deeds or had never received mortgage interest relief on another property, they are now considered a first time buyer and can be added as eligibile for mortgage interest relief on your house.

Will this make a difference to your tax relief at source?

• If you are paying more interest than your maximum allowed limits, you can receive additional tax relief.
• This will particularly happen if you are considered a second time buyer, as only €3,000 of interest can be relieved each year, as opposed to €10,000 for the first time buyer.
• If you are no longer considered a first time buyer, your new spouse can claim interest relief at a higher rate than you – 25% rather than the 15% a second time buyer is allowed.

How much of a difference can this make?  In the first full year you are married, this can make a difference of €2,500. Well worth checking this out we think.

Edit:  One clarification here – First time buyer status will only apply to a house for 7 years, so if you stay in the same house for more than 7 years, your spouse will not get the full 7 years of first time buyer status.  However if you do move house, your spouse will get 7 years of first time buyer status.

And thanks to Niall Brady of the Sunday Times for reporting this important story on the front of the money section of the Sunday Times today.