Is mortgage interest tax deductible from rental?

pcornall

Sorry if this is a naive question, but I started renting out a property last year and now face completing my first self-assessment tax return.

I have been told contradictory things about whether the interest I pay on the mortgage for the property is tax deductible. Can anyone clarify this for me?

If it is tax deductible is it likely the lender will provide me with a statement of how much interest was paid between the date of rental to the end of the tax year? Or is it something I will have to try and calculate myself? (This will be complicated because it is repayment mortgage and I began renting midway through the year!).

Thanks for any advice.

madgagoo

The interest on a loan used to buy the property is an allowable expense for tax purposes. This would usually be a mortgage on the rental property. It is only the interest payments that are allowable, not any capital repayments.

Your mortgage provider will give you a statement of interest, although not always automatically - you may have to ask for it. If you ask nicely they may break this down into months to make it easier for you.

Don't forget other expenses such as maintenance, agents fees etc.

pcornall

Thanks a lot for the response - that's really helpful.

John_Pierpoint

Was it let furnished?