Tracker mortgage redress for buy-to-let mortgages

Financial penalties: Revenue may impose fixed penalties or percentage-based penalties. The type depends on the nature and amount of the under-declaration. <a href=\"https://www.revenue.ie/en/vat/interest-and-penalties/when-are-penalties-payable-to-revenue/fixed-penalties.aspx\">Learn more .
Interest charges: Any unpaid tax accrues interest from the original due date until settlement.
Legal action: Persistent or deliberate under declarations can result in prosecution. Details on Revenue offences explain the risks.

Revenue has published a new Manual “ Income tax implications for landlords with buy-to-let mortgages who have received tracker mortgage redress payments from ba...

Revenue has published a new Manual “Income tax implications for landlords with buy-to-let mortgages who have received tracker mortgage redress payments from banks”. The Manual confirms that “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.” Taxpayers affected do not have to file amended returns for the years to 2016 relating to this matter, or take account of such payments in rental computations for their 2017 tax returns.

Read the Manual Please feel free to contact Barry Treacy [email protected] in our Tax Department if you require any assistance on the above.