Tax Plan 2013
Tax Plan 2013: What does it mean for the private home owner?
From 1 January 2013 new rules will apply as to what qualifies as ‘private home debt’ and therefore to the deductibility of interest. In addition, the capital insurance scheme for the private home (KEW) will be abolished.
In 2012 a loan is considered to be private home debt if it is undertaken for the acquisition, maintenance or improvement of one’s home. As of January 1, 2012 loans are subject to additional terms and conditions if they are to qualify as ‘private home debt’. The loan must be fully repaid within 360 months (30 years). This repayment must take place at least according to an annuity repayment schedule. The tax authorities assess this on the basis of the (remaining) amount of the debt and not the amount due within a year. Furthermore, the repayments must be contractually fixed and they must actually occur. A (contractual and real) linear amortization schedule also satisfies the repayment requirement. In some cases, such as with payment problems, some more flexible measures apply. For a new loan for the financing of home acquisition which is undertaken on or after January 1, 2013, but which does not qualify as ‘private home debt’ the interest is non-deductible. The debt comes under box 3.
End of Box 1 exemption for KEW
Someone who undertakes capital insurance, savings accounts or investment rights can no longer make use of the KEW regime. These products will come under box 3.
Transitional private home debt and KEW
The Tax Plan 2013 contains transitional arrangements for existing cases. For example, a situation in which there is an irrevocable purchase agreement or contract for purchase on December 31, 2012.