System Administrator

Dear HMRC Admin 10 I am grateful for your prompt response to my previous inquiry. I apologize for any confusion caused. To clarify, My friend and I purchased a property together, with my friend contributing 50% of the purchase price in cash, and I obtained a mortgage solely in my name for my 50% share. The property is registered solely in my name. We have a declaration of trust that outlines the beneficial ownership distribution. As per our declaration of trust, my friend is designated as the 50% beneficial owner of the rental income, while I am designated as both the 50% beneficial owner of the rental income and the 100% beneficial owner of the mortgage payments. Considering this arrangement, I kindly request your guidance on the tax treatment of mortgage expenses. As the sole owner responsible for the mortgage payments, am I eligible to claim the mortgage expenses solely for myself? I appreciate your assistance in this matter.

Hi, I rent out a property with my husband. We don't earn that much from it and previous years have not filled in a Self Assesment Form, rather just submitted our earnings from rent on our personal tax accounts online with HMRC. How would be go about claiming the tax back from mortgage interest? Would we need to start doing a self assesment form? Thanks 

I have entered the interest only payments in box 43: Residential property finance costs for my 2022/23 return. Section 44 is not showing on the tax return on line. . However, the final calculation has not made any reduction in my total tax. I still am being charged tax as if I was not paying any interest. What do I do now?

Hi HMRC, Thank you for your reply. I understand that I can claim either the -Property allowance (£1,000) or -Allowable expense & mortgage interest, but not both. I need to make the choice. If I fill in the SA105, Box 20.2 (Property allowance) and Box 24-29, 44 (Allowable expense)? Will HMRC help me to choose which is beneficial for me? Thank you

Hi Is interest on interest only loan a finance cost against property income. Thanks

In relation to Box 44 Am I right in saying that the HMRC will automatically allow the rate of deduction on it's online system? Can I also put in the "arrangement fee" for my interest only mortgage as the same is reviewed at least every 2 years. Many thanks

Hi there Do you put the total mortgage internet in box 44. And HMRC will calculate 20% themselves. Or do we need to add the total mortage interest then take 20% and then add that figure on box 44? Many thanks

2 Questions Q1. So that I’m absolutely clear on mortgage interest tax relief, is the following correct? I calculate my total rental income, then deduct my allowable expenses to work out my net profit. I then work out 20% of this (this being my tax band) to establish my tax liability. Do I then deduct 20% of my mortgage interest from my tax liability? Q2. If the above is correct, I did not deduct 20% of my mortgage interest from my tax liability for the last financial year. How do I rectify this? (Please note that I did not qualify for self assessment last year). Thanks

Hi there! If you rent out your flat and have a mortgage on it, you may be eligible for tax relief on the interest you paid on the mortgage.

HI, I have a flat and an interest only mortgage - when it says to add in interest that would mean i would add my annual mortgage repayments as its interest only or would interest only not be counted towards this? Thanks