Thank you very much Keninf. Interesting to see that Revenue themselves don't know for sure and won't be able to advise until they get clarification of the scheme from Ulster Bank. Equally interesting that Revenue are viewing it as compensation and using that language. Which of course it is."In order to determine the correct tax treatment applicable in any circumstance where a compensation payment is made to an individual, each settlement must be analysed on its own facts,” they told me, quite correctly. “Firstly, the nature of the compensation payment itself would need to be determined to establish if it is revenue or capital in nature. The general principles established by legislation, case law and Revenue guidance would then need to be applied to each case based on this analysis.”
That's is part of the reply back from Revenue, but also that they have got no detail of the scheme from Ulster Bank. And until they do they can not determine what tax, if any will apply.
Author then goes on to say that industry people he has spoke with do not believe any tax will apply, unless there is something out of the ordinary with an individuals status. Though that is not a definite.
Guys I'm not a tax expert, but have an accounting background.Thank you very much Keninf. Interesting to see that Revenue themselves don't know for sure and won't be able to advise until they get clarification of the scheme from Ulster Bank. Equally interesting that Revenue are viewing it as compensation and using that language. Which of course it is.
I guess we'll see what happens next. Probably won't get any further clarification until the new year, what with Christmas happening in between.
I would be inclined to think the bulk of people are quite happy with the offering, I know a few people with them and all are delighted but their mortgages are not that big at this stage. Bearing in mind that any mortgage out there is at least 15 yrs old so for most half way through term or so and those that knew what they had were probably making good use of the offset and may not owe as much as they should, those that didn't use the offset features at all are really losing nothing and gaining. Yes in theory they might come into money and use it but in reality unlikely as if you didn't know or use it for 15 yrs hardly likely to now!4 And for so many people with this type of product I see very little mobilisation?
I think this is correct. If you never used the Offset and didn't even understand what it was (which seems to be a big chunk of the mortgage holders) then getting a 5K payout is probably a nice little unexpected bonus. I think the people who were utilising the offsetting feature and had some time left on their mortgage are probably happy as well, they are getting big payments that represents a large percentage of their remaining outstanding balance.I would be inclined to think the bulk of people are quite happy with the offering, I know a few people with them and all are delighted but their mortgages are not that big at this stage. Bearing in mind that any mortgage out there is at least 15 yrs old so for most half way through term or so and those that knew what they had were probably making good use of the offset and may not owe as much as they should, those that didn't use the offset features at all are really losing nothing and gaining. Yes in theory they might come into money and use it but in reality unlikely as if you didn't know or use it for 15 yrs hardly likely to now!
Also the numbers who might wish to avail of the switching to new property feature are likely to be very small and not even sure if that feature is gone too so in general I would think there just aren't huge numbers of offset customers unhappy with the solution which might actually work to their benefit, easier for UB to up the offer for a few rather than many.
I would be inclined to think the bulk of people are quite happy with the offering, I know a few people with them and all are delighted but their mortgages are not that big at this stage. Bearing in mind that any mortgage out there is at least 15 yrs old so for most half way through term or so and those that knew what they had were probably making good use of the offset and may not owe as much as they should, those that didn't use the offset features at all are really losing nothing and gaining.
I'mI think this is correct. If you never used the Offset and didn't even understand what it was (which seems to be a big chunk of the mortgage holders) then getting a 5K payout is probably a nice little unexpected bonus. I think the people who were utilising the offsetting feature and had some time left on their mortgage are probably happy as well, they are getting big payments that represents a large percentage of their remaining outstanding balance.
The folks that are probably unhappy are people who know the power of the offsetting feature but weren't in a position to fully avail of it yet, and also have a long term remaining. I imagine it is that cohort of customers that are going to challenge this. And rightly so.
I think this is correct. If you never used the Offset and didn't even understand what it was (which seems to be a big chunk of the mortgage holders) then getting a 5K payout is probably a nice little unexpected bonus. I think the people who were utilising the offsetting feature and had some time left on their mortgage are probably happy as well, they are getting big payments that represents a large percentage of their remaining outstanding balance.
The folks that are probably unhappy are people who know the power of the offsetting feature but weren't in a position to fully avail of it yet, and also have a long term remaining. I imagine it is that cohort of customers that are going to challenge this. And rightly so.
Yes in theory they might come into money and use it but in reality unlikely as if you didn't know or use it for 15 yrs hardly likely to now!
Also the numbers who might wish to avail of the switching to new property feature are likely to be very small and not even sure if that feature is gone too so in general I would think there just aren't huge numbers of offset customers unhappy with the solution which might actually work to their benefit, easier for UB to up the offer for a few rather than many.
Very true and good point. My parent's availed iof this and benefited very well from offsetting. I did do a little in the beginning when interest rates were high but not so much when the rates hit the floor. Still having a twenty year term left is now an ideal time to offset for me. But obviously not for much longer! So can I ask all ye knowledgeable people , its an offset flexible mortgage so is the offsetting a term and condition of the mortgage or a feature?I would be inclined to think the bulk of people are quite happy with the offering, I know a few people with them and all are delighted but their mortgages are not that big at this stage. Bearing in mind that any mortgage out there is at least 15 yrs old so for most half way through term or so and those that knew what they had were probably making good use of the offset and may not owe as much as they should, those that didn't use the offset features at all are really losing nothing and gaining. Yes in theory they might come into money and use it but in reality unlikely as if you didn't know or use it for 15 yrs hardly likely to now!
Also the numbers who might wish to avail of the switching to new property feature are likely to be very small and not even sure if that feature is gone too so in general I would think there just aren't huge numbers of offset customers unhappy with the solution which might actually work to their benefit, easier for UB to up the offer for a few rather than many.
I think this is correct. If you never used the Offset and didn't even understand what it was (which seems to be a big chunk of the mortgage holders) then getting a 5K payout is probably a nice little unexpected bonus. I think the people who were utilising the offsetting feature and had some time left on their mortgage are probably happy as well, they are getting big payments that represents a large percentage of their remaining outstanding balance.
The folks that are probably unhappy are people who know the power of the offsetting feature but weren't in a position to fully avail of it yet, and also have a long term remaining. I imagine it is that cohort of customers that are going to challenge this. And rightly so.
Sorry I should have asked, but what's the new property feature?Also the numbers who might wish to avail of the switching to new property feature are likely to be very small and not even sure if that feature is gone too
It is a feature of the Offset Tracker Mortgage. You can transfer your mortgage to a another property and keep the offset capability, tracker margin and facility that you had. It's a nice feature, but I'm not sure if it is being removed along with the offset capability. I didn't see it specifically mentioned in the press release, so that would be something that would need to be clarified with Ulster Bank themselves.Sorry I should have asked, but what's the new property feature?
Emm I kind of do also remember Ulster Bank made quite a few mistakes with interest charges , maybe I received four refunds of overcharged interest , would it be worth having a forensic accountant examine the mortgage in your opinion?
Never heard of anyone on the offset having mistakes in the interest charges, not to say it didn't happen though! Did they explain how it happened?Emm I kind of do also remember Ulster Bank made quite a few mistakes with interest charges , maybe I received four refunds of overcharged interest , would it be worth having a forensic accountant examine the mortgage in your opinion?
Still no letter here, how about you?are we the only two in the country who still don’t know what they’re being offered?!
My biggest concern with the delay is that it eats into the available time to seek financial advice.
No. And we have received other post each day. It’s extremely frustrating.Still no letter here, how about you?
Really strange. My best guess is we were in the last batch and it can take 7 working days if letters are issued from the uk( if that's where they are coming from). In that event we should receive them tmra, we or Thurs at the very latest.No. And we have received other post each day. It’s extremely frustrating.
Can anybody tell me what the time limit is on seeking financial advice? Is it January 10th or can we dispute the amount up until we lose the facility on May 23rd? I didn't see anything in the letter about formally accepting or rejecting the payment. Surely if the €250 thats being included with the payment is for the purpose of seeking independent advice, then we can wait until we receive that payment to go looking for advice?are we the only two in the country who still don’t know what they’re being offered?!
My biggest concern with the delay is that it eats into the available time to seek financial advice.
Taking payment on 10th of January does not affect your ability to lodge a complaint. Nor is it acceptance of Ulster Banks decision.Can anybody tell me what the time limit is on seeking financial advice? Is it January 10th or can we dispute the amount up until we lose the facility on May 23rd? I didn't see anything in the letter about formally accepting or rejecting the payment. Surely if the €250 thats being included with the payment is for the purpose of seeking independent advice, then we can wait until we receive that payment to go looking for advice?
Thanks for your reply, much appreciated. I'll check out the FAQTaking payment on 10th of January does not affect your ability to lodge a complaint. Nor is it acceptance of Ulster Banks decision.
Check out their FAQ on their website. Most of your answers will be there and from the horses mouth.
Is there any chance that the letters could be going astray in the postal system?No. And we have received other post each day. It’s extremely frustrating.
We've been receiving all our other Ulster bank post as normal for the last few months - offset savings summaries, interest increase notifications, etc. And I had them confirm the postal address on record, so I don't think it's that.Is there any chance that the letters could be going astray in the postal system?
Are you getting any other letters from Ulster Bank at the moment?
This letter looks like it came from Leopardstown, not the Uk.
Is there a sorting office in your district that you could check for undelivered mail?
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