Self Assesment - "Interest" figure of repayment mortgage

  • Filter
  • Time
  • Show
Clear All
new posts

    Self Assesment - "Interest" figure of repayment mortgage


    I'm looking at renting my flat starting sometime over the next few months ... I've been looking at self assessments and tax (trying to get my head around it).

    Quick question on what figure to give as the "interest" portion of a repayment mortgage.

    Obviously when filling in your self assessment your allowance includes the mortgage interest which has been paid over the year ...

    As the mortgage interest is calculated on an ongoing basis and is 'compound interest' it's hard to know what set figure to say you pay monthly or over the full year.

    What's the best/usual way of working out exactly how much you have paid in interest over the year?

    If I'm missing something obvious here or barking up the wrong tree please say


    Your lender should be able to tell you how much principle and how much interest you've paid shouldn't they?

    Alternatively I guess you could plug your figures into this calculator:


      Contact your mortgage company and ask them to send you a "Statememt of Debit Interest" for the relevant tax year.

      My bank sends me a statement at the end of every tax year.


        Thanks, that calculator is quite useful.

        I also over pay, ad-hoc, so that makes it more messy. I guess the best way would be to phone your lender and ask them to give you exact figure paid in interest between two dates.


          Ask them to confirm in writing - in case HMRC want proof
          I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...


          Latest Activity


          • inherited house - best to sell or rent
            by Wobble1
            Hi all,

            My father sadly passed away in February, I already owned half of his house as tenants in common via my mothers will (passed several years before), although I didn't live there with him. Have my own house nearby. I am sole beneficiary of his will, and as well as everything else,...
            17-06-2021, 20:32 PM
          • Need CGT help or do i ned an accountant
            by Sara2
            Mother died in 2007 left house to me and my 2 sibs it was family home and i lived in it until 1985 when i had my own house. My brother also lived in house at point mum died and he remained there until 2010 when not being able to sell the property i purchased whole of property by buying brother and...
            13-06-2021, 11:53 AM
          • Reply to Need CGT help or do i ned an accountant
            by Sara2
            I fail to see how i can notify hmrc that rental was terminated in 2019 whilt non paying tenant remained in the property until May 21
            17-06-2021, 19:29 PM
          • Reply to Need CGT help or do i ned an accountant
            by Gordon999
            If you do not inform the Tax Office and just move back to live in the BTL property, the "rental business with tax losses" , can remain in existence for three years.


            But the property owner can notify the Tax Office...
            17-06-2021, 12:28 PM
          • Reply to IHT, CGT and Income tax avoidance
            by jpkeates
            But there's £750,000 mortgage lending to pay off when you die, so the "giving away" is more like a loan.

            I'm not expecting anyone to pay 1p more tax than they should, but I find it's sometimes interesting to replace "the taxman" and "HMRC" with "we/us"...
            17-06-2021, 09:38 AM
          • IHT, CGT and Income tax avoidance
            by clairol
            So I’ve been listening to some property investment seminars where the suggestion is to buy ‘good’ properties, regularly put the rent up and never sell them.
            The advice is to keep them forever so you do not pay CGT; re-finance regularly and either enjoy the money or re-invest it; pay minimal...
            16-06-2021, 16:40 PM
          • Reply to IHT, CGT and Income tax avoidance
            by Section20z
            Yes but people who do maths in your example could give the £750,000 away before death so beneficiaries get £400,000 extra and tax man loses ....
            17-06-2021, 09:01 AM
          • Reply to IHT, CGT and Income tax avoidance
            by jpkeates
            It might be popular, but only to people who can't do maths.

            It's only a tax effective policy in the same way that having no money when you die means you don't pay that much inheritance tax.

            Ignoring the reliefs and personal thresholds for simplicity, if you die with a portfolio...
            17-06-2021, 08:10 AM
          • Reply to Need CGT help or do i ned an accountant
            by jpkeates
            Surely the business continued (the rent was still owed, even if not paid) and the business continued until the disposal of the property (assuming it was the only property in the business).

            Your interpretation is more appealing if it can be justified....
            17-06-2021, 07:54 AM
          • Reply to Need CGT help or do i ned an accountant
            by jpkeates
            Whoever gave you that advice doesn't understand how CGT works.
            You straight line the increase between purchase and disposal and you can deduct any time the property was your main residence (plus some additional months) as that period's gain is tax free.

            Any valuation when you start...
            17-06-2021, 07:52 AM