Mortgage interest relief on marginal tax payers

Request 767634696 

Can you provide a breakdown of the effects of the phasing out of the mortgage interest relief on marginal taxpayers. I would like to know the following:

- How much interest relief was claimed each year since 2016 to 2024
- How much extra revenue was generated each year directly attributed to the reduction in interest relief (2016 to 2024) 

Response 

2023 is the most recent tax year for which complete data is available. 

Since 2015, mortgage interest tax relief has been capped at a maximum available relief for that year of assessment. It is also restricted by a maximum capital balance of £300,000. In this response, the amount of interest claimed is the total amount of interest given to that taxpayer once these caps are applied. 

Details of the cap for each year of assessment are available on gov.je via the link below:

Interest tax relief 

Total interest relief claimed is not available before years of assessment prior to 2020 due to the move from the ITAX system to the Revenue Management System in 2019. Article 3 of the Freedom of Information (Jersey) Law 2011 therefore applies to this information 

The total cost of this relief is taken from the annual Tax Statistical Digest. Additional revenue can be calculated using the decreasing cost of the relief.

​Article applied

Article 3 - Meaning of “information held by a public authority"

For the purposes of this Law, information is held by a public authority if –

(a)     it is held by the authority, otherwise than on behalf of another person; or

(b)     it is held by another person on behalf of the authority.​