Jersey Senator Frank Walker, Chairman of the Finance and Economics Committee, told the States yesterday that the Committee was considering a recommendation to remove tax relief on mortgage interest and possibly other types of interest.
Answering a question from Senator Paul Le Claire, Senator Walker told the House that they were currently establishing policy with regard to direct taxation, and in particular, the treatment of interest payments.
'My Committee accepts that subsidising the cost of borrowing by tax relief leads to the acceleration of spending by the consumer and probably causes him/her to spend rather more than would be the case without tax relief' he said. 'While not wishing to overstate the effect, it is clearly the case that interest tax relief can contribute towards inflation.’
Senator Walker said that he anticipated the draft plan would be considered by his committee in June and that the final version would be brought to the States in July.
Trinity Deputy David Crespel pointed out that small businesses
often took out second mortgages as a form of commercial finance,
and Senator Walker reassured him that such interests would be
carefully taken into account.
.
Network Tweets
Network BlogsContent
provided by
|
Archive | Resources | Partners | Site Map | Links | Newsletter Archive | Contact | RSS Feeds | About | Syndication | Advertising & Marketing | Recruitment | Terms & Conditions | Privacy & Cookies
Copyright © 2012 - All Rights Reserved - Tax-News.com
IMPORTANT NOTICE: Tax-News.com has taken reasonable care in sourcing and presenting the information contained on this site, but accepts no responsibility for any financial or other loss or damage that may result from its use. In particular, users of the site are advised to take appropriate professional advice before committing themselves to involvement in offshore jurisdictions, offshore trusts or offshore investments.
Write a comment