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How do I show my mortgage interest - Property Finance costs explained 2018 - 2019

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 2018 to 2019 tax year, you can only claim 50% of the cost of getting a loan, or alternative
finance to buy a residential property that you let, and 50% of any interest on such a loan or
alternative finance payments.

For the 2018 to 2019 tax year the 50% phased in element of the loan cost is dealt with by a reduction in the basic rate allowance. 

On SimpleTax under Property Expenses,

Select BANK RELATED CHARGES

 

Add the expenses category LOAN INTEREST PAID

Enter 50% of the interest paid

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

Enter 50% of the interest paid

 

 

 

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