Keeping mortgage interest relief approved

Guernsey’s States has approved keeping tax relief on interest paid for mortgages on a homeowner’s main residence. The decision halts a phased withdrawal agreed in 2015, with supporters arguing that rising borrowing costs are squeezing households.

The relief lets homeowners claim up to £3,500 a year against mortgage interest. Deputy Aidan Matthews said it was the wrong time to phase it out, while Deputy Neil Inder warned that approving all proposed Budget amendments could add £20m to the budget. Deputies also raised concerns that the measure benefits homeowners while renters face high costs and struggle to save for a deposit.