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Homebuyer's tax relief
When you buy a home with the aid of a mortgage or other loan you were entitled to tax relief on the interest provided the place is your main home. This tax relief which was scrapped after 5 April 2000 was normally given through the MIRAS system. This meant the lender charged the borrower interest net of allowable tax relief on the first £30000 of the mortgage and then claimed the relief back from the Inland Revenue . Tax relief was given at 10 1999-2000 tax year. Effectively this meant that if the mortgage rate you were being charged was 7 youd actually be paying interest at a rate of 6.3 on the first £30000. Where a borrower was not in the MIRAS system relief wac obtained by adjustment to PAYE tax coding or by way of a reduced tax bill for the self employed .See Also Mortgage Centre and Mortgage comparison Service for the latest facts and figures. ©Moneyextra.com Moneyextra.com recommends you take independent financial advice before acting on any article 2009-02-17 00:00:00 © Moneyextra.com