Guernsey mortgage interest relief to remain unchanged

A proposal to reduce tax relief for some Guernsey mortgage holders has been defeated in the island's parliament.

The Treasury and Resources Department had called, in its 2013 budget report, for the limit for relief to be reduced from £400,000 to £350,000 from 2014.

It also declared its intention to lower the limit in future budgets, until the relief was phased out by 2021.

However, Deputy Matt Fallaize earlier convinced members to await the results of a tax review before making changes.

The review of personal taxation is due to be carried out in 2013, with the results to be presented to the States at the end of the year.

The proposal for a reduction was removed from the budget, on which debate was due to continue throughout the day.

States members have also agreed by 25 votes to 21 to implement a review on how taxation might be used to deter property speculation.

Deputy Yvonne Burford's successful amendment will force Treasury and Resources to look into the matter and then include recommendations in the budget report for 2014.