Mortgage Interest as an expense being phased out

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    Mortgage Interest as an expense being phased out

    Evening all. I’ve got a question regarding the phasing out of mortgage interest as an allowable expense.

    Currently when I complete my return I input the total amount of mortgage interest. I’m aware mortgage interest will taper off from 75/50/25 % then to the basic rate of tax.

    When I come to complete future returns do I calculate the mortgage interest at 75/50/25 and 20% and input the figure or is it likely I’d put the total interest and the system would work out the rate based on the year?

    Many Thanks


    #2
    The first stage taper will be applied for 2017-2018 and 75% of finance costs will be allowed to reduce the tax bill.

    On the current SA105 form ( 2016-2017) , the " 100% finance costs" are entered in box 26 same as last year.

    For the SA105 form ( 2017-2018), I would guess the "finance costs" will be claimed in a new box to reduce the tax to pay amount .


    https://www.gov.uk/government/public...dual-landlords

    Comment


      #3
      Thanks for the reply so there is no definitive answer from HMRC at present?

      So your thinking is that you would enter the full mortgage interest in box 26 as has happened in previous years but a new box could possibly be added to show calculations based on 75%, 50%, 25% and 20% rates?

      Thanks

      Comment


        #4
        I am hoping that the online self assessment form will work it all out for me when the time comes

        Comment

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