A Danish government plan to cap the tax deduction on interest payments would affect about 1.2 per cent of taxpayers, or just under 56,000 people, according to an analysis reported by The Local Denmark. At present there is no limit on how much interest on bank loans and mortgages can be deducted, but the proposal would restrict the relief to the first 150,000 kroner a year.
The labour movement think tank behind the analysis found that those affected would pay on average about 23,200 kroner more a year. The impact is concentrated around Copenhagen, with more than 8 per cent of taxpayers in wealthy Gentofte affected, compared with 0.1 per cent in Lemvig in western Jutland. In most of the country's municipalities, fewer than one in a hundred taxpayers would see their bill rise.
Source: The Local Denmark