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Ireland Exclusive: Blow for struggling homeowners as mortgage interest relief to be cut in Budget

13:06  10 october  2017
13:06  10 october  2017 Source:   independent.ie

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Mortgage interest relief will be cut next year in a move that will affect about 300,000 homeowners . Minister for Finance Paschal Donohoe said it was stated in the Programme for Government, and confirmed in last year’s Budget , that it would be tapered out to 2020 for the remaining recipients.

One of Donald Trump’s first acts as president was to hurt struggling homeowners by signing an executive order that reversed an Obama interest rate cut on FHA mortgages . This is how Trump began his presidency that he claimed gave power pack to the people

Stock photo © Provided by Irish Independent Stock photo Struggling homeowners are facing a major budget blow as Minister for Finance Paschal Donohoe prepares to slash mortgage interest relief by 25pc.

The relief allows homeowners who bought during the boom years claim back tax on their mortgage interest payments.

Fianna Fail wanted the tax relief protected in the budget but conceded it would have to be reduced to pay for other measures.

Read also: Kevin Doyle: Donohoe tries to play Budget bingo where everyone wins

The tax relief will be reduced by 25pc every year for the next three years.  It is expected the reduction will save the State €50m next year.

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  Government plans to give Social Welfare Christmas bonus in Budget Full details will be announced on Tuesda y, October 10, when Finance Minister Paschal Donohoe delivers the Budget.The Budget 2018 will also see working parents receive a wage increase of around €2.45 per hour, or almost €100 a week if they're working 40 hours.But Independent Alliance ministers are at odds with their Fine Gael colleagues in government over the future of the hated Universal Social Charge (USC).A spokeswoman for the group indicated that they are siding with Fianna Fáil in this row and want to see the tax cut in the Budget next month.

The change to mortgage interest relief was first announced in the 2015 emergency Budget , and at first it didn't seem to make a lot of sense. Sell properties that are no longer profitable. Attempt to cut costs to offset the extra tax you'll be paying.

Buy-to-let landlords face cuts in the amount of tax relief they can claim on mortgage interest The move is aimed at creating a "level playing field" between homeowners and investors, chancellor 'Major blow '. Nicholas Leeming, chairman of national estate agents Jackson-Stops & Staff, said the

Mr Donohoe will also raise revenue for tax cuts and welfare payments by increasing the stamp duty on commercial property sales from 2pc to 6pc which will raise €400m. An increase tax on tech companies is expected to raise €150m.

Excise duty on cigarettes will also increase and a sugar tax will be introduced later next year. 

Tracker scandal: Paschal is calling bankers next week to 'admonish' them .
Donohoe is calling in the bankers on Monday and Tuesday to “admonish” the chief executives.Donohoe is calling in the CEOs of Bank of Ireland, AIB, Ulster Bank, PTSB and KBC on Monday and Tuesday to “admonish” them over their behaviour, said the Taoiseach today.

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