Are there not benefit in kind implications ?
Hi Brendan,
Will revenue consider this a mortgage writedown or a buyout of a tracker mortgage? And what are the differences from a CGT perspective?
My property is a buy to let, as many of these loans are, what are the tax implications for getting a discount of 40% (say 100k) when I sell in the future?
My mortgage is fully up to date an has no arrears, a writedown means I would have to consider this for CGT purposes when selling the property in the future.
I believe I am being bought out of my tracker rate here essentially, so is there any capital gains consideration for me?
Thanks
Not CGT, €100k write-down should be liable for CAT in my opinion.
However, I'm not sure revenue would go chasing and I'm certain there'd be no political support to chase people who make gains in this manner. Sure lottery winnings aren't even taxed.
I always assumed Lottery winnings aren't taxed for the reason that it is a negative sum game - if the winner is taxed then all the losers would have to be entitled to relief for their losses, and since the amount lost exceeds the amount paid out to winners, it would not be a very attractive proposition...
The same applies to gambling generally.
So even though I bought and sold the property for the same amount I would have to pay CGT on 100k (as if I made a 100k profit)
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