Question Mortg. Int. relief and CGT exemption

Discussion in 'Budget 2018' started by jim, Mar 26, 2018.

  1. jim

    jim Frequent Poster

    Am I correct in saying that if you purchased a property in, say 2012, you get both MIR and also the CGT exemption, subject to the terms of both of those schemes?

    If the above is correct then is this not grossly unfair on someone who may have purchased a property in, say 2015, and qualifies for neither of these very generous schemes?

    As well as this the help to buy scheme i think only applies to someone buying a new house since 2017? So again it seems that if you bought in 2015, for example, you,re been punished for not buying in the years either side of it.
  2. renter45

    renter45 Frequent Poster

    Mortgage Intrest relief applies to PPR, if you sell a PPR there no CGT
    MIR doesn't apply to an investor but the CGT exemption does, provided you bought within the timescale.
    If you bought in 2015, chances are you paid less then a person buying the same house in 2017.
  3. jim

    jim Frequent Poster

    Yes but MIR only applies to PPR bought in certain years.
    Cgt exemption also only applies to an invetsment property bought in certain years.

    So if you bought your ppr or invest property in 2015 or after I dont think you can avail of either which seems unfair.

    Then there is the help to buy scheme which is a huge help if buying from 2016 or is it 2017 onwards. So again if bought in 2015 you are unfairly snookered.

    Shouldnt matter re assumptions on property prices. House price theoretically may have declined in value (although unlikely of course).

    It seems that 2015 purchases dont qualify for any of these generous and lucrative government backed schemes. Why is this the case? Perhaps I am missing something.

    For example; joe bloggs bought ppr in early 2015 and invest property in late 2015. He cant claim MIR or the CGT exemption or the help to buy scheme.
  4. David1234

    David1234 Registered User

    The prices paid in 2015 on average are 10-20% cheaper then in 2017 so I don't think 2015 purchasers can feel too hard done by.

    Tax incentives are introduced and dropped all the time. No point in moaning over missed opportunities.
  5. jim

    jim Frequent Poster

    But by that logic David a house bought in 2013 will have been significantly cheaper than the same house in 2015. Yet if bought in 2013 the CGT exemption and/or MIR applies.

    Perhaps these tax incentives should have been phased out and not dropped?

    Houses bought just pre 2015 and just post 2015 have very valuable tax incentives that can be availed of (MIR, CGT Exemption and Help To Buy) yet houses bought in 2015 specifically have no such tax incentives at all, that I am aware of, and this is unfair on house buyers in that year. Why has 2015 being overlooked?