Landlords to Challenge Abolition of Section 23
The Irish Property Owners Association (IPOA) is set to challenge the Government‘s abolition of Section 23 Reliefs. The Government brought in the incentives to encourage investment, and were successful but are now fleecing the people who purchased these properties. It is unacceptable for anyone to change the terms of a contract after it has been signed and the monies paid, but for a Government to do so is bordering on Criminal.
Taken from the Irish Property Owners Association website December 2010
Comment: The multi-million Euro bonus package paid to certain AIB staff was justified by the government on the basis that there were contractual obligations. It would seem only fair that property investors would have their contractual terms honoured, especially as it was the Government which introduced these property incentive schemes. The wealthier investors have already used up their Section 23 allowances so it’s the people with large borrowings that haven’t been able to use their allowances yet. It’s also unfair that the interest allowed against rental income was reduced in 2009 from 100% to 75%. How can the Government change the rules of their own incentive schemes? There will be a trust issue for any future schemes introduced by Government. For many landlords, rental income is their main source of income. It’s insulting that such income is described as “passive”, the result being that such income is non-pensionable.
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