Interest only mortgage and tax

Total yearly income approx £20K (3 properties)
Total annual interest only mortgage payment £900 (on one property only)
Residential buy to let
What tax relief is available currently
How is it calculated. Can any1 give me an approx amount in £’s

There are lots of things that are tax deductable. Too many to list here so I suggest you get hold of something like the Tax Cafe book and have a good read.

1 Like

Sorry my message must not be clear. I’m aware lots of things are tax deductible. I’m specifically solely asking about mortgage interest in my post. Thanks for the reply tho.

No, mortgage interest is not tax-deductible. But you can get a tax credit. I believe you can get a £180 tax credit.

Yes, no longer tax deductable, but you get a tax credit of 20% of the finance costs, so if you’re a 20% tax payer and are not tipped into the 40% band by the changes, you won’t see any difference. If, like me, you are now just into the 40% band because of this, the change will still be minor.

… although it has knock on effects: potential child benefit repayments, tax free interest reduced from£1,000 to £500 to name a couple.

1 Like