Plan to stop tax relief for those in arrears delayed

Friday 18 October 2013 18.40
Not all banks are able to implement the system at present
Not all banks are able to implement the system at present

The Revenue Commissioners has told banks to delay a plan to stop paying tax relief to people in mortgage arrears until all institutions were in a position to implement it.

Banks are due to stop paying the tax relief if a home owner has not paid the interest on a loan for six months or more.

One bank had already sent letters to home owners in arrears informing them that the tax relief would be stopped.

However, Revenue has confirmed that it has contacted banks asking them to delay taking the step until all lenders are ready to proceed.

A spokesperson for Revenue said: "In the interest of equity and uniformity, a decision was taken to postpone the move to the 'paid basis' until all financial institutions were in a position to do so."