BTL tax return

Gam2015

Thinking ahead for doing my tax return next month for my BTL. I am currently a basic rate tax payer will probably earn around £20k this year. And my BTL income on top of this is £4800. Can i still claim my full amount of interest on my mortgage against my tax? Thanks.

booksurr

Gam2015 wrote: »

Thinking ahead for doing my tax return next month for my BTL. I am currently a basic rate tax payer will probably earn around £20k this year. And my BTL income on top of this is £4800. Can i still claim my full amount of interest on my mortgage against my tax? Thanks.

depends what you mean by "my tax"

if the mortgage interest is wholly in respect of the rental business then if it is more than your rental income you will "simply" create a rental business loss

you cannot offset a loss against your income tax due from your non rental income,

but you can carry forward the loss for use against any rental profits in the future

Gam2015

It wont be a loss my question is, is the full mortgage interest still an allowable expense.

csgohan4

2016-2017 full interest rate to be claimed

as You know the phased reduction in allowable interest from mortgages being in play from this year Apr onwards

https://www.gov.uk/government/news/changes-to-tax-relief-for-residential-landlords