Its that time of the year when Accountants are focusing on the task of preparing and submitting Income Tax returns for clients. A new issue that needs to be considered for tax adviser’s this year is what are the implications for landlords with buy-to-let mortgages who have received mortgage redress payments from banks?
Yesterday the Revenue Commissions published a new Tax and Duty Manual Part 04-08-19 . It deals specifically with this issue.
This Revenue E-brief notes that The Central Bank has published Guidance “Principles for Lenders when Tracker Mortgage Related Issues Identified for Redress “. Revenue point out that the Central Bank document, at Appendix B of Appendix 3, “Supplementary Guidance for Redress and Compensation for Tracker Mortgage-related Issues”, Paragraph 1.3.4., at page 8, states: Any tax liability that impacted customers may incur as a result of the relevant issue or in respect of any redress, compensation or other payment made to impacted customers by the lender, as a result of the relevant issue, are to be discharged by the lender. The lender is to liaise directly with Revenue in this regard.
Helpfully Revenue clearly state that Taxpayers affected do not have to file amended returns for years to 2016 in relation to this matter, or to take account of such payments in rental computations for their 2017 tax returns.
If any you or any clients have any tracker related or buy to let investments debt issues that they need guidance on – please do not hesitate to contact myself or @jimstafford @andrewhendrick or @louiseguinan on 01 6614066 or by email to email@example.com