System Administrator

In the email thread above, HMRC Admin 17 says: "This will be taken as a basic rate tax deduction from your tax liability for the property. You calculation will work out the tax based on your net profit If there is any tax due it will then use 20% of the amount in the finance costs box and reduce the tax liability by this amount. There will be separate line towards the end of the calculation to show this." Where is this line towards the end of the calculation? What is the specific box number and a form number? Please advise. Thank you

I thought the same as Bella Boo. That in order to claim property allowance you couldn't claim expenses, which includes the tax relief on mortgage interest payments. But it seems that mortgage interest is no longer termed an expense, so you can claim it along side your Property Allowance - is this correct?

I thought in order to claim property allowance, you can't claim any other expenses including mortgage interest? This page on www.gov.uk seems to agree with me. It is still an expense, just not one that is deductible for residential lettings when calculating profits and instead is relieved when calculating tax liability. https://www.gov.uk/guidance/tax-free-allowances-on-property-and-trading-income#cannot Also, I believe the same poster (@suzy king) has also been advised they can claim both the rent a room relief AND property allowance for the same property for the same tax year. One of the conditions of rent a room relief is they can't have any income from a trade, letting or agreement, other than rent a room receipts. So if they have receipts from the same property for a tenant, FHL etc then they cannot claim rent a room relief.

Is this also the case if you have claimed the property allowance? Or only if you are claiming the allowable expenses? Thank you

How is the tax relief for this calculated please as the Residential finance cost box is after the page that shows your 'taxable profit for the year'.

I rent out my flat that I have a mortgage on - should i be putting the total interest i paid on the mortgage for the 2020/21 tax year under "Residential property finance costs" or is this not necessary? I'm unclear if the interest is something I can claim relief on anymore.