Do away with personal loan interest tax relief

It has always seemed strange to me that someone could take out a loan to buy luxury items (e.g. a brand new car; to pay for a holiday) and be able to claim tax relief on the interest payments. Tax relief on mortgage payments does seem to be reasonable enough but not on anything which would be regarded as 'non-essential' 

Why the contribution is important

This will increase Government tax income. One would assume that it is possible to put a figure on the amount that is being 'lost' at present. It would be easy to implement a change from the start of the next available tax year ( ie 2018/19) without consultation as has been the case with this years removal of the £1000 Age Allowance.

by Retiredhappy on April 06, 2017 at 02:49PM

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Comments

  • Posted by commonsense April 07, 2017 at 11:48

    so not really about the tax relief on a loan, but more about the removal of the £1000 AGE allowance. judging by your choice of user name of course.
  • Posted by pent April 07, 2017 at 13:13

    This is such a small relief. You only get 10% of the interest paid (not the loan amount). You would need a loan of approximately £18,000 using the average 6% loan rate (Blackhorse/ Conister) to even qualify for £100 relief. It just would not add up
  • Posted by Retiredhappy April 12, 2017 at 14:43

    re 'commonsense': yes I am retired but I also currently have a loan on a car which has 18 months to run but I have not through choice claimed for the interest I'm paying for the reason stated.

    Re 'pent': with apologies to Tesco ( other supermarkets are available) : ' Every little helps'
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