Tax Credit for mortgage interest

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    Tax Credit for mortgage interest

    Hi
    I recently completed my tax form and included 50% of the mortgage interest in the form so that this can be deducted from the rental income. I’ve read that I should receive a tax credit relating to the other 50%. Does this tax credit need to be actively claimed or is this calculated automatically by HMRC?
    Thanks Matt


    #2
    I may have misunderstood (and hope I have).

    When you submit your tax return you can only (for this tax year) claim for 50% of your finance costs.
    You then calculate your income tax and then deduct the restricted relief (20% of the remaining 50%) from that figure before you submit the return.

    If you submitted the return recently, HMRC will simply accept the return as submitted (unless they select it for review for some reason).
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

    Comment


      #3
      Thank you for the explanation, much appreciated.

      Comment

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