Ireland stops Landords tax while UK does the opposite

Ireland is reversing a policy that prevented private landlords from claiming full tax relief on their mortgage interest.

The reversal of the 2009 policy comes as the British government is to introduce a similar rule next April.

In a Budget statement last week, Ireland’s finance minister Michael Noonan said that landlords will be able to claim 80% tax relief from next year, up from the current 75%.

The amount they are able to claim will rise 5% each year until they can claim 100%.

Noonan said that the policy had been introduced originally to rescue Ireland’s public finances. However, the housing crisis in Ireland now prompted the change.

From next April, private landlords in Britain will be increasingly restricted on the amount of mortgage interest rate they can set against tax.

By 2020, they will not be able to deduct any mortgage interest from their rental income, but will instead receive a 20% tax credit.

An application for a Judicial Review to challenge the change failed in the High Court this month.

Landlords and landlords’ groups say they will continue to fight the measure through stepping up their lobbying activity.

Tax saving guides – Property, Inheritance, Income
Save £1000s on your mortgage
Save over £500 on Gas and Electric
Free Unlimited Broadband

Written by: Houseladder