Income tax implications for landlords with buy-to-let mortgages who have received tracker mortgage redress payments from banks
The Central Bank of Ireland published a document in December 2015.
The document, Principles for Lenders when Tracker Mortgage Related Issues Identified for Redress, states the following:
“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.” ( Paragraph 1.3.4., Appendix B of Appendix 3 at page 8).
In view of the fact that lenders are to liaise directly with Revenue, individual taxpayers affected do not have to take any action. It is not necessary to file amended returns for years to 2016 in relation to this matter. It is not necessary to take account of such payments in rental computations for their 2017 tax returns.
Published: 22 October 2018