Tax implications of rebate

Last night on the way home, an EA in Drogheda was interviewed on radio1 discussing an offer one of their house sellers has. The seller will "refund" the purchaser six months mortgages payments once the sale closes. THe house price is not reduced nor is the mortgage amount borrowed, just a refund cheque for 6 months worth of payments (about 6 grands worth).

Are there any tax implications for the person receiving this refund?

Obviously there are limitations to the offer e.g.maximum monthly rebate of €X. These payments would not be regarded as income or a gift for tax purposes but rather a discount on the cost of the house as it comes directly from the vendor. It could effect the ultimate CGT calculation on a rental property but should have no conequental liability in respect of a PPR in my opinion.

My impression was that there may be an income or gift tax liability as essentially the vendor is giving you around 6,000 in a lump sum.

The house should retain its valuation at the full amount although it could probably be argued.

Can it be considered similar to receiving a 10% discount in a shop (although admittedly the shopkeeper doesnt charge you the full price and refund you the 10%). There's no tax issues with that.

What about BIK?

BIK only applies to employees. Yes it is a discount although it is wrapped up differently for marketing purposes.