How do I show my mortgage interest - Property Finance costs explained 2017 - 2018

The tax relief that landlords of residential properties get for finance costs is being restricted to the basic rate of Income Tax. This is being phased in from 6 April 2017 and will be fully in place from 6 April 2020.

For the 2017 to 2018 tax year, you can only claim 75% of the cost of getting a loan, or alternative
finance to buy a residential property that you let, and 75% of any interest on such a loan or
alternative finance payments.

For the 2017 to 2018 tax year the 25% phased in element of the loan cost is dealt with by a reduction in the basic rate allowance. 

On SimpleTax under Property Expenses,



Add the expenses category LOAN INTEREST PAID

Enter 75% of the interest paid

Add the expense category Residential Finance costs not included in box 26

Enter 25% of the interest paid




The friendly way to do your taxes online.

SimpleTax automatically tells you what expenses you should be claiming, what you should watch out for and ways to lower your tax bill.

Have more questions? Submit a request


Powered by Zendesk