Stressed by tax?
Get Earnr Pro

Mortgage Interest Restriction

[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.

More detail:

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.

Back to Taxionary

You might also like...

decorative image for a blog

What is IR35 and do I need to worry about it?

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
decorative image for a blog

Flat rates for mileage vs actual expenses. What is better?

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
decorative image for a blog

What is the EIS and how does it work?

If you are looking to invest in small and medium sized businesses, the Enterprise Investment Scheme (EIS) provides lots of tax reliefs for doing so. Here we discuss what it is and how it works.

Read more
Earnr logoDownload earnr