nige106

Many Thanks for the clarification. So on my return I can enter £3665 into box 44 which shall reduce my tax bill by £733 (20%)? I have tried to call, however keep getting passed between Self Assessment and Property income departments without an answer.

Many Thanks for the prompt response. We are married and the split is 50/50. Am I correct that I can enter the £3665 figure into box 44 for finance cost reduction? I haven't previously done this, can it be back dated and if so by how long?

We have a property that's rented out in joint names. From this I don't believe we have to self assess as our Net profit is less than £2500 per year. Is this correct? It can be collected from PAYE by us updating yearly the figures via HMRC? We deduct our expenses and don't claim the £1k property allowance. We currently don't deduct any kind of relief for our repayment mortgage interest. Can we? If so our example figures are (Without being split 50/50): income £6780 allowable expenses £2850 (management, ground rent, service charge) profit £3930 tax @ 20% £786 Tax reduction for finance cost (3665*20%) = £733 To pay £53 Is that correct? If my wife were to become a higher rate tax payer I presume we'd split incoming and outgoing 50/50 before we work out the tax individually?