Section 24 (mortgage interest relief restriction)
The rule that individual landlords cannot deduct mortgage interest from rental income, but get a tax credit at the basic rate (20%) instead. Fully in place since April 2020.
In short: Section 24 of the Finance (No. 2) Act 2015 stopped individual landlords of residential property deducting mortgage interest and other finance costs from rental income. Since 6 April 2020 they get a basic rate tax reduction of 20% of those costs instead. Higher rate taxpayers feel it most.
英格兰。 于 5 October 2026 对照法律进行核查. 信息，非法律建议。
How it works, simply:
- Work out rental profit without deducting mortgage interest or other finance costs.
- Tax that profit at your normal rates.
- Reduce the tax by 20% of the finance costs (limited by your property profits and income; unused amounts carry forward).
It applies to individuals and partnerships letting residential property. Limited companies deduct finance costs as a business expense instead. Since the furnished holiday lettings regime ended in April 2025, holiday lets follow the same rule.
The rule was phased in from 2017 and fully applied from 6 April 2020. This is general information; an accountant can work out your figures.
Related: Making Tax Digital for Income Tax, Capital gains tax 60-day report
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