Current account mortgages

Walter Ego

Is there a tax anomoly with the new current account mortgage idea?

In essence if you have money in the current account it is temporarily offset against the amount outstanding on your loan thereby lowering the amount of interest payable.

Now if I have €1000 on deposit and earn say 1% interest on it, I am liable for DIRT at my appropriate rate.
Because that same €1000 in my current account is offsetting say 4% in interest charges could the Revenue Commissioners claim that I was in fact benefitting to the tune of 4% and charge me DIRT on it?

I'm a bit concerned that they will decide this over time and backdate the charges. Do anybody out there have a definitive answer on this?

Walter Ego

Start a thread about an illegal immigrant dyslexic black lesbian blind orphan being abused by HIV positive arab fundamentalists in a mental home in Cambodia and everybody jumps in with their 2 cents worth.

Ask a serious question and get fúck all response.

Typical.:mad:

BuffyBot

Ask a serious question and get fúck all response.

Perhaps it's because no one knows.


Why not ask the Revenue people?

Bluehair

In fairness it's a question that's fairly speculative and beyond the scope of anyone without a backround in the industry.

You'd probably get a better response on http://www.askaboutmoney.com or indeed to contact a good accountant yourself.

Walter Ego

I thought that the people who frequent this area of the boards would have some financial knowledge or interest in it as a topic. The last thing I want to do is ask the revenue, that could be suicide.
Nevertheless my last bump did the trick.

Victor

Originally posted by Silent Death
Now if I have €1000 on deposit and earn say 1% interest on it, I am liable for DIRT at my appropriate rate. Because that same €1000 in my current account is offsetting say 4% in interest charges could the Revenue Commissioners claim that I was in fact benefitting to the tune of 4% and charge me DIRT on it?

I seriously doubt it. Look at all those people with no-interest, no-fees bank accounts.

The real problem with those accounts is potentially when you lose your job - all your money is in the wrong account.

Ask your lender if the scheme is revenue approved.

b20uvkft6m5xwg

Not everyone using boards LIVES on the internet or is even in your time zone.

A c.27 hour buffer zone to start complaining you havent got an answer is childish. Put the toys back in the pram and grow up.


David

Walter Ego

Point taken.

* gathers fallen rattle and heads back to mommy *

Nuttzz

Originally posted by Silent Death
Start a thread about an illegal immigrant dyslexic black lesbian blind orphan being abused by HIV positive arab fundamentalists in a mental home in Cambodia and everybody jumps in with their 2 cents worth.

Ask a serious question and get fúck all response.

Typical.:mad:

so very true......

all of these products are regulated by the IFSRA, and have passed the revenue requirements so the points you raised are vaild but not really an issue

Walter Ego

Thanks Nutzz.
Like a lot of people, taxation is something that happens to me, not something I know a great deal about.
I was just wary of getting slapped with a bill in 12 months and having no provision made for paying it.