HMRC

BROKEBUT4HOPE

Hi everybody, 
I am doing my self assessment tax return for the first time. I own a BTL and whilst i know there is box for rent received i want to know if there is a box for mortgage paid for the year (mine is an interest only mortgage) and if this is calculated/applied.
I know that there are other boxes for ground rent, service charges and repairs but I haven´t come across one for mortgage payments.
Thanks all. 

BROKEBUT4HOPE

I also remortgaged and used the finance to renew my lease- can the cost and legal fees be added to the allowance?

Dazed_and_C0nfused

You can no longer claim loan interest as an expense against the rental income.

Box 44 on the paper return (land and property page) is your starting point.

[Deleted User]

Enter your finance costs on box 44 - see attached. If, for example, your mortgage interest was £2000 your tax bill will reduce by £400. Your profit will not be reduced by the finance cost.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/973764/sa105_English_Form-2021.pdf

BROKEBUT4HOPE

@[Deleted User] thanks but box x44 says residential financial costs, this is a buy to let property.

Jeremy535897

BROKEBUT4HOPE said:

@[Deleted User] thanks but box x44 says residential financial costs, this is a buy to let property.

It's a buy to let residential property, presumably, and therefore the mortgage is a residential financial cost.

[Deleted User]

From the accompanying notes:

Box 44 Residential property finance costs

The costs of getting a loan, or alternative finance to buy a residential property and any interest on such a loan or alternative finance payments can be used to calculate a reduction in your Income Tax.

Put the amount of any costs, interest and alternative finance payments in box 44