Hi
Not sure if this has been discussed on here yet (did a quick search but couldn't find anything) but what do people think of the idea of there being tax relief on payments to your mortgage to reduce your negative equity similar to the relief you currently get for paying in to your pension.
My thinking is if people are in negative equity there should be an option to allow them pay money in to their mortgage and reduce their negative equity and claim tax relief at the rate of tax they pay (subject to the usual limitations). Whilst the government would miss out on the tax paid in the long run it should assist in getting the housing market moving and also assist in recapitalising the banks. You would only be able to avail of the scheme to the point where you have re-balanced your mortgage to your original investment (i.e. 80/90% mortgage) and relief would only be available against your PPR.
I would think it would be quite easy for statements of negative equity to be obtained from a bank accredited valuer which can be sent into revenue to allow a person participate in the scheme.
Makes as much sense as tax relief on pension payments in my opinion.
Anyone have any thoughts?
Saudi
Not sure if this has been discussed on here yet (did a quick search but couldn't find anything) but what do people think of the idea of there being tax relief on payments to your mortgage to reduce your negative equity similar to the relief you currently get for paying in to your pension.
My thinking is if people are in negative equity there should be an option to allow them pay money in to their mortgage and reduce their negative equity and claim tax relief at the rate of tax they pay (subject to the usual limitations). Whilst the government would miss out on the tax paid in the long run it should assist in getting the housing market moving and also assist in recapitalising the banks. You would only be able to avail of the scheme to the point where you have re-balanced your mortgage to your original investment (i.e. 80/90% mortgage) and relief would only be available against your PPR.
I would think it would be quite easy for statements of negative equity to be obtained from a bank accredited valuer which can be sent into revenue to allow a person participate in the scheme.
Makes as much sense as tax relief on pension payments in my opinion.
Anyone have any thoughts?
Saudi