Brendan Burgess
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Tax change to see clampdown on bank of Mum and Dad
Finance Bill set to increase taxable benefit on interest-free loans used to help buy homes
www.irishtimes.com
Up to now, the gift was based on the best deposit rate which the lender could have got.
The Finance Bill proposes to change it to the lowest mortgage rate the borrower could have got.
It's probably not that significant at the moment, but could be if interest rates rise.
A loan of €100,000 @ 2% would be €2,000 a year well below the €3,000 exemption from each parent, or €6,000 combined exemption.
But I suppose it does use up part of that exemption.
Brendan