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Posted Tue, 30 Aug 2022 06:07:04 GMT by susan46
Hi I am trying to fill in my self assessment for 2021-2022. Which box do I put the mortgage interest payments in as I cannot see the box for property finance on this year's self assessment. Has the tax relief now stopped for mortgage interest payments? Thanks in advance.
Posted Mon, 05 Sep 2022 09:33:14 GMT by Fayeeeeee
I have the same question and my understanding is that you put the total interest amount in Residential finance costs box and you get 20% tax relief rather than claiming is as an expense - but would be good to get confirmation on this.
Posted Mon, 05 Sep 2022 11:15:48 GMT by HMRC Admin 17

Hi
 
Fayeeeeee,
 
Thank you for your question.

I can confirm that your understanding regarding this is correct  .

Thank you.


 
Posted Mon, 05 Sep 2022 14:11:37 GMT by HMRC Admin 17

Hi
 

susan46 ,
 
On the paper SA105 (UK Property) mortgate interest relief is shown in box 44, which is
"Residential property finance costs"  .

Thank you.
Posted Tue, 06 Sep 2022 02:57:47 GMT by Amanda Vivienne
Hi HMRC Admin 17 Let’s say my total mortgage interest amount was £3000 and I would put it in Residential finance costs box 44. And my taxable income was £13,000, my personal allowance was £12,570, hence my total taxable income is £0? Rental income £18,000 Expenses £5,000 Taxable income £13,000 Less personal tax allowance £12,570 Taxable income £430 Less tax relief for mortgage interest (Mortgage interest paid is £3,000) 20% of £3,000 mortgage interest £600 Total taxable income £0
Posted Tue, 06 Sep 2022 11:17:41 GMT by HMRC Admin 17

Hi,
 
Thank you for your question.

I am not clear what you are actually asking.

Basic tax relief for finance costs incurred in a rental business can only be set against rental income.

If they cannot be utilised in the year that they were incurred, then any unused fiance costs are carried forward to the next year.

It would be your responsibility to keep a record of any unused finance costs for inclusion on future tax returns.

More information about finance costs can be found at :

PIM2050 - Deductions: interest: contents      .

Thank you.

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