From John McBrearty.
RE Chris Whitworth’s letter (JEP, 13 May), I believe that the reason for there being no protests against plans to remove mortgage interest relief is that there are no such plans. My understanding is that relief will continue to be available on loans up to a maximum of £300K for house purchase.
However, the reference in 2007 tax returns to allowances restricted or not by 20% means 20% does not make the position plain, as mortgage interest relief is not mentioned in either category (perhaps because it is a relief rather than an allowance – there may be a subtle difference).
I did ask the question of the comptroller’s office last year and was referred to the financial models available on the gov.je website taxmoney section. I found these rather laborious to trawl through, but I think my interpretation at the time was that mortgage interest relief was not being withdrawn. Perhaps Mr Whitworth’s letter will elicit a clarification from the tax office.
My feeling is that abolition of mortgage interest relief is still a political potato too hot to handle. It might bring house prices down, but not sufficiently at the lower end to balance the buyer in the £300/600K price range. Hence other plans, such as shared equity are on the drawing board.
Maison Alexandre, Rue du Crocquet,
St Brelade.