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A taxpayer wishes to repay part of their main residence mortgage using an interest-free loan from their father. The DGT rules that this does not prevent the continued application of the tax deduction, provided there is a direct link between both loans and the new capital is used to amortise the previous one.
The ruling provides legal certainty for taxpayers seeking to restructure mortgage debt through family assistance without losing existing tax benefits related to their primary residence.
The tax team reviews your specific situation.
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