Revenue rules out writedown tax

Revenue has clarified reports that mortgage holders whose bank debts are written down could be hit with a 33% tax charge.

A briefing issued by Revenue said it would not pursue mortgage holders who had a portion of their debts written off, but tax experts expect a raft of audits to make sure that bogus write-offs are not being created to lower tax bills.

The Capital Acquisitions Tax Consolidation Act 2003 states that, under any circumstance other than inheritance, a person who becomes “beneficially entitled in possession” to goods, property, or money will be subject to tax.