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Mortgage relief to be phased out by 2021

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HOMEOWNERS will be hit hard by this year's Budget, after Treasury announced plans to scrap mortgage interest relief.

HOMEOWNERS will be hit hard by this year's Budget, after Treasury announced plans to scrap mortgage interest relief.

In an otherwise tame Budget, released today, Treasury minister Gavin St Pier confirmed the relief would be phased out over the next seven years.

The benefit is currently available for mortgages up to £400,000 – any amount above this is not subject to relief.

But from 1 January 2014, if deputies approve the proposal, interest relief will be provided only on mortgages up to a top limit of £350,000. The maximum mortgage level will then be reduced by £50,000 each year.

Deputy St Pier denied it was an attack on middle-class islanders.

He has published an Audioboo to explain the rationale behind this Budget, as well as a second one in which he talks about the mortgage relief plan specifically.

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