Keeping mortgage interest relief approved
Summary
Guernsey’s States approved an amendment to keep tax relief on interest paid on mortgages for a main home. The change stops a phase-out agreed in 2015; the relief is capped at £3,500 a year.Key Facts
- The amendment was brought forward by Deputy Aidan Matthews during the budget process.
- The relief applies to interest on a mortgage for a homeowner’s principal residence.
- The annual tax relief is capped at £3,500.
- The planned phase-out had been frozen from 2024 to 2026, according to the article.
- Deputy Neil Inder said approving all proposed amendments would add £20 million to the budget.
- Supporters said the relief could help households facing higher mortgage costs.
- Deputy Jayne Ozanne argued that the relief benefits homeowners but does not help renters who struggle to save for a deposit.
- Ozanne cited average island rents of more than £2,000 a month and an average mortgage payment of about £1,000.
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