Property Let Mortgage Interest Relief

The amount of relief for finance costs (mortgage interest) on residential properties will be restricted to the basic rate of Income Tax.  This will be introduced gradually from 6th April 2017.

Finance costs include mortgage interest, interest on loan to buy furnishings and fees incurred when taking out or repaying mortgages or loans.

Landlords will no longer be able to deduct all of their finance costs from their property income to arrive at property profits.  They will instead receive a basic rate of reduction from their income tax liability for their finance costs.