Since so many people are affected, I am also surprised that Revenue has not published on its website details of how it will treat compensation payments and excess mortgage interest relief.
Looks like the financial institutions will take the tax liability hit, but some banks are dragging their heels on the issue, hence no formal instruction from revenue yet
maybe this has been raised an answered alreday but what will happen to those people who would have used mortgage interest payments to off-set tax liability in rental income computations? and are now in line for refunds of interest overpayment
That's a very good point. Would such borrowers have to submit amended tax returns? I'm afraid I've no idea.
If they reach an agreement with the financial institutions as to how they (the banks) will deal with the global tax liabilities arising, then surely that would be the best all round...
Take the example of a borrower that was overcharged interest on a BTL mortgage and claimed the excess interest as a deduction on his income tax returns. How will that matter now be settled with Revenue?
Will there be some sort of an amnesty? If so, that means the value of the redress/compensation will be dependent on the tax position of the impacted borrower. Does that seem fair?
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