It has been suggested that it would be calculated as the total interest saved for the remainder of the mortgage term based on the amount offset and not to exceed the total interest payable. Not sure how accurate this is though.Yip that's correct but I doubt there would be too many at that craic. Wonder how they would calculate it. Would it go onto the 24 month pot and averaged out like the ex gratia. If so then it wouldn't equate to much really.
I imagine because the 'pay and redraw' set up is easily operated by any bank on a basic mortgage, it will just sit as a credit until wanted back again, could be done this minute by many banks if they wanted without any major tech issues whereas offering a fully operational current account that also was tied to a mortgage for offsetting is a far bigger ask and would need more work by a bank. I'm no IT expert but I presume no bank is willing to pay money to set this sort of arrangement up for such a small number of accounts but they will be able to take on and manage the pay and redraw easily enough.But why then, are they paying tens of thousands in some cases, to mortgage holders for what they are suggesting is a small inconvenience?
Also the whole capital requirement for loans that are out Vs deposits. I don't understand that either but it was a big sticking point for these mortgages.I imagine because the 'pay and redraw' set up is easily operated by any bank on a basic mortgage, it will just sit as a credit until wanted back again, could be done this minute by many banks if they wanted without any major tech issues whereas offering a fully operational current account that also was tied to a mortgage for offsetting is a far bigger ask and would need more work by a bank. I'm no IT expert but I presume no bank is willing to pay money to set this sort of arrangement up for such a small number of accounts but they will be able to take on and manage the pay and redraw easily enough.
Thanks target, did you request a callback from their helpline or how did you get in contact with this person who was familiar with the offset calculations specifically?It has been suggested that it would be calculated as the total interest saved for the remainder of the mortgage term based on the amount offset and not to exceed the total interest payable. Not sure how accurate this is though.
Based on my conversation with the FA from UB, I could still save all that interest by using the pay and redraw facility and drawing the funds out again is not subject to lending criteria, so effectively my money is always still available to me. But why then, are they paying tens of thousands in some cases, to mortgage holders for what they are suggesting is a small inconvenience?
The main differences I can see are that I have to manage the funds myself in such a way that doesn't trigger a redemption and that my available funds to redraw reduce as the mortgage reduces.
I haven't used the offset up to now and have a lump sum that I could use to fully offset for the remainder but the source of my funds doesn't fit their criteria so the conversation never really went any further than that. I'm uncomfortable with just accepting the basic offer I received as a result but not sure if theres a whole lot I can do about it?
You're welcome. I rang the helpline and asked to speak to someone about the ex gratia payment and specifically, how it was calculated in relation to my mortgage. They took my details and a QFA rang me back the following morning.Thanks target, did you request a callback from their helpline or how did you get in contact with this person who was familiar with the offset calculations specifically?
Thanks in advance
Great stuff thank you. I will do the same and try to get a calculation from them on an inheritance of 20k that I'm due soon. If its worth my while I will put it into the offset account and put it all against the mortgage in March r April and tie it all up before May.You're welcome. I rang the helpline and asked to speak to someone about the ex gratia payment and specifically, how it was calculated in relation to my mortgage. They took my details and a QFA rang me back the following morning.
I'm confused by this piece. Does it mean that yes you must pay CGT now, but if you can show in the future that the predicted loss on which the payout was based occurred, and so there was no real gain, then you can claim a refund on the CGT? Hard to imagine how that would work. (If I'm even understanding it correctly.)If the contingency materialises at some stage,
Is your home an asset?Has anyone received tax advice re the money received from ulster bank? I have just received this today..........."It is subject to CGT as a capital sum derived from an asset, within TCA 1997 s 535. If the contingency materialises at some stage, a refund of CGT can be claimed under TCA 1997 s 562 even if the four year limit has passed (TCA 1997 s 562(3))"
Also...:So it may be worth getting a memo on this from a tax advisor to ensure done correctly. Simple math would be that you can offset the annual CGT allowance of 1,270 each, and then cut 33% for revenue."
Would love a second opinion from here
My view (finance background) is that I would not agree with this advice as the TCA 1997 s 535 relates to capital sums received by means of compensation for any kind of damage or injury to an asset or for the loss, destruction or dissipation of an asset or for any depreciation or risk of depreciation of an asset.Has anyone received tax advice re the money received from ulster bank? I have just received this today..........."It is subject to CGT as a capital sum derived from an asset, within TCA 1997 s 535. If the contingency materialises at some stage, a refund of CGT can be claimed under TCA 1997 s 562 even if the four year limit has passed (TCA 1997 s 562(3))"
Also...:So it may be worth getting a memo on this from a tax advisor to ensure done correctly. Simple math would be that you can offset the annual CGT allowance of 1,270 each, and then cut 33% for revenue."
Would love a second opinion from here
That’s it. We could all be getting a bad deal out of this if the interest rates go a certain way.Technically we are getting what many would see as a big payout. But based on our plans for our finances over the remaining 18 years of our mortgage, my husband and I believe we will be worse off over the term, assuming an interest rate of 4%. Hard to see the payout as a taxable gain on an asset when we will potentially still incur a loss.
It’s a shame revenue haven’t issued a clear directive on this situation.
The advice was it would be paid by cheque if you no longer had an account licked to the offset facility. If you still have your account open, it's strange that it went out to you by cheque. I'm expecting my payment by cheque but haven't seen it yet.I recieved a cheque today, has this happened to anyone else as I thought it would be pais into our offsett account
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