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Posted Tue, 22 Jun 2021 16:04:54 GMT by Graham Fyfe
On the HMRC video for Property Income, it states that 25% should be entered in the "Allowable Loan Interest" and other financial costs" section and 75% in the "Residential finance costs not included in Loan interest and other financial costs" section. On the Self Assessment form online, there is no entry entitled "Allowable Loan Interest" which I think is Question 26. Instead it is entitled "Non Residential property finance costs" which, when you try to enter a value in it results in a Warning message. Is it safe to assume that 100% of the Loan Interest should now be entered at Question 44? Would be helpful if the video help reflected how the online Self Assessment worked.
Posted Thu, 24 Jun 2021 14:14:31 GMT by HMRC Admin 9
Hi, 

Thank you for the feedback regarding the HMRC video.

For the tax year 2020/21 there is no allowance for residential costs as an expense. Instead the full amount would be entered in the box for "residential property finance costs" (Box 44 on paper return). The 25/75% split relates to the 2019/20 tax year. 

Thank you. 

 

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