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Treasury to check out a cap on mortgage interest relief

by isleofman.com 19th June 2006
The Government is to "explore further" the of a cap on mortgage interest relief. But, they add, if a cap was to be brought in, it would be deliberately set too high to affect most people. A consultation into the system of tax reliefs for individuals on the Island showed, says the Treasury, wide support for the deductions and reliefs that are currently available. However, they say, a majority of responses supported a change to mortgage interest relief that would restrict the ability to claim relief on a mortgage for a second home. After listing what they describe as complex rules in place in the UK, Ireland and Jersey, the Treasury says a simple system is to cap the amount of interest deducted for tax purposes. They say this figure could be obtained from the interest certificates include in tax returns. They say no evidence would have to be provided that the mortgage was on the only or main residence. Also the lender would not have to include capital outstanding on the interest certificate or the purpose for which the loan was provided. Treasury says it is now to "explore an interest relief cap further" but say it should be high enough not to affect the majority of taxpayers.
Posted by isleofman.com
Monday 19th, June 2006 01:04pm.

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