[ˈmɔːɡɪʤ ˈɪntrɪst rɪsˈtrɪkʃᵊn]
Mortgage Interest Restriction allows landlords to only be able to claim at the Basic Rate for their finance costs on residential properties.
Mortgage Interest Restriction is a policy introduced in 2017 in the United Kingdom that restricts how much tax relief Landlords can claim on their finance costs.
Under this restriction, Landlords can only claim tax relief on mortgage interest repayments at the basic rate of Income Tax. Before, individuals were able to claim at their Marginal Tax Rate. This policy therefore only affects people if they are a higher rate or Additional Rate taxpayer.
If someone has multiple properties, it might be more tax efficient to run their business through a Limited Company.
There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.Read more
Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.Read more