Afterflood
Registered User
- Messages
- 74
No point taxing trackers, they are a dying mortgage product that will continue to shrink as people pay them off, move to variables (as a result of moving house etc).
I would expect the Govt would want a more stable and predictable taxable source than tracker mortgages. As mentioned it would be easier to remove TRS.
Maybe they are planning a tax on all mortgage repayments? Surely there are better ways of increasing the tax take.
Personally I would agree with tracker holders losing their TRS - they have not had any of the increases that other SVR mortgage holders have been hit with (and will continue to be hit with) so they could pay some way.
Personally I would agree with tracker holders losing their TRS - they have not had any of the increases that other SVR mortgage holders have been hit with (and will continue to be hit with) so they could pay some way.
How could they assess this?However I do think the government is genuinely looking at taxing tracker mortgages.
Different things-buying a pint or petrol attracts VAT or Excise. What tax type would apply to a tracker mortgage?People wouldnt be being taxed becuase they are lucky but becuase they choose to avail of a tracker mortgage like peope are taxed when they choose to avail of a pint, or petrol or any other taxed item.
Its not a simple matter to do this and just like banks, the Govt could not encourage someone to do something that may not be in there best financial interests.People could switch to another type mortgage if they like and thereby avoid the tax.
I think the idea is that since tracker holders are in actuality doing well as regards mortgage payments and are in a way being subsidised by variable rate holders that the government will look for a little additional tax from the tracker holders.
My friend thinks that it will be a 1 or 2% payment on the mortgage payment similar to what they do with life type savings schemes at the minute.
Might be a good way for the government to raise a few bob.
+1why should i be taxed for borrowing wisely and not above my head. Bail out bankers who gambled incessantly yet tax those who borrowed wisely? What a load of...
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