Mortgage interest relief was abolished years ago in the UK so the issue wouldn't arise.
I do know that compensation paid in the context of the PPI scandal was taxable in the hands of the policyholders.
But I personally think given the stress people have been under that it should not be taxable, like compensation for personal injuries. Of course revenue have to look to the law so I suspect it is taxable.
So if revenue have an agreement with BOI then it should be the same for all other banks.
Yes, they are remitting the payment to Revenue out of a sum that would otherwise be paid to the customer. That sum comes from their own funds.
To my mind, discharging a liability and bearing the cost of that liability are one and the same thing.
And where does that gross amount come from? The bank's own funds.They are deducting the TRS overpayment from refunds due to customers as a result of overcharging interest.
Of course.If the full amount was paid by the banks then each customer would have to deal with Revenue separately to pay the over-allowance of TRS.
And where does that gross amount come from? The bank's own funds.
Yes, the customer and not the bank is liable for the excess relief. The bank is now discharging that liability on behalf of the customer.The customer, and not the bank, is liable to pay, out of that amount, any over-allowance of TRS.
I don't find that statement at all confusing and it reflects my understanding of what is happening in practice.What confused the issue for impacted customers was the Finance Minister's assertion that "that banks which overcharged customers would bear the costs of the additional interest relief those customers received from Revenue.
Yes, the customer and not the bank is liable for the excess relief. The bank is now discharging that liability on behalf of the customer.
In the bar tab analogy you have not borne the cost of the tab you have administered the collection and that is very different to bearing the cost.
Yes, by clearing the bar tab I simultaneously partially discharged my liability to my friend.As a result of doing that you simultaneously discharged your obligation to your friend - need to factor that in so that on a net basis you did not bear the cost.
The (time value of money) interest payment on the redress amount just put the policyholder back into the same position that they would have been in if the overcharging had not taken place.
The compensation amount over and above that was taxable.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?