Life after mortgage interest relief for landlords
In this Active Practice update we examine the financial impact of the withdrawal of tax relief on mortgage interest payments for properties bought for residential letting.
Not all residential lets have been affected by the introduction of this finance cost restriction.
If the property is let through a UK resident or non-UK resident company, or if the property is a furnished holiday let, relief for interest and other finance costs remains unchanged.
Commercial property lets are also unaffected.
If you have a loan for both residential and commercial properties, you will need to work out a reasonable apportionment of the interest to calculate your finance cost for the residential property as the element relating to the commercial property remains fully deductible.
For full details of the impact of the withdrawal of this relief together with examples:
If you are a landlord and want more details please call us on 01772 741200 or email firstname.lastname@example.org