{"id":168,"date":"2019-05-29T12:53:15","date_gmt":"2019-05-29T11:53:15","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=168"},"modified":"2026-02-02T17:03:12","modified_gmt":"2026-02-02T17:03:12","slug":"tax-relief-on-mortgage-interest-explained","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/","title":{"rendered":"Tax relief on mortgage interest explained"},"content":{"rendered":"<\/div> <!-- .c-body -->\n\n<div class=\"b-cta-mini m-orange m-align-left\">\n    \n    <div class=\"b-cta-mini__content\">\n\n        \n        <h2 class=\"b-cta-mini__title\">Hey, have you sorted your tax return yet?<\/h2>\n\n        \n        \n        <div class=\"b-cta-mini__body\">\n            <div class=\"b-block-body\"><p><span class=\"notion-enable-hover\" data-token-index=\"0\">Avoid costly mistakes and let Taxfix take care of it for you. Our UK-accredited accountants make filing quick and stress-free, starting from just \u00a3119.<\/span><\/p>\n<\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-cta-mini__action\">\n\n            <a data-js=\"openAuth\" data-location=\"\" data-view=\"signup\" href=\"https:\/\/taxfix.com\/en-uk\/assessment\/signup\" class=\"gtm-get-started-button c-button  m-large\" onClick=\"javascript:setVariant('taxReturn');\">Start<\/a>\n\n\n        <\/div>\n\n        \n    <\/div>\n<\/div> <!-- .b-cta-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">How did the mortgage interest tax relief change?<\/h2>\n\n\n\n<p><strong>Before 2017:<\/strong>&nbsp;The <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/mortgage-interest\/\">interest for your mortgage<\/a> was 100% deductible. Since most individual landlords have interest-only mortgages, you could basically claim all mortgage repayments. That\u2019s because you pay only the interest each month and the price of the property at the end of the period.<\/p>\n\n\n\n<p><strong>After 2017:<\/strong>&nbsp;The tax relief that landlords of residential properties get for finance costs is being restricted. The reduction is based on the basic rate of income which is currently 20%. HMRC outline the situation <a href=\"https:\/\/www.gov.uk\/guidance\/changes-to-tax-relief-for-residential-landlords-how-its-worked-out-including-case-studies\">here<\/a>, including some case studies on what this could mean for you as a landlord with one or many rental properties.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - what&#039;s a landlord?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/DooX5wdaBqw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Mortgage interest tax relief over the years<\/h2>\n\n\n\n<p>You can claim a basic rate relief tax reduction. The below table shows how this changed over the years from 2017 to 2021.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Tax Year<\/th><th>Mortgage interest deductible 100%<\/th><th>Deductible at a 20% tax credit<\/th><\/tr><\/thead><tbody><tr><td>2016-2017<\/td><td>100%<\/td><td>&#8212;<\/td><\/tr><tr><td>2017-2018<\/td><td>75%<\/td><td>25%<\/td><\/tr><tr><td>2018-2019<\/td><td>50%<\/td><td>50%<\/td><\/tr><tr><td>2019-2020<\/td><td>25%<\/td><td>75%<\/td><\/tr><tr><td>2020-2021<\/td><td>&#8212;<\/td><td>100%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>The reduction is the basic rate value of 20%, applied to the lowest of:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Finance costs like mortgage interest, loads to buy furnishings, and fees acquired when taking out or repaying mortgages\/loans<\/li>\n\n\n\n<li>Property business <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/profit\/\">profits<\/a><\/li>\n\n\n\n<li>Adjusted total income over the Personal Allowance<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">What happens now?<\/h2>\n\n\n\n<p>There are two questions to consider.&nbsp;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Is your total income (without <a href=\"https:\/\/taxfix.com\/en-uk\/allowable-property-expenses-for-rental-income\/\">allowable expenses<\/a> and mortgage interest) in <a href=\"https:\/\/taxfix.com\/en-uk\/income-tax-rates-in-the-uk\/\">the higher tax band<\/a>?<\/li>\n\n\n\n<li>Will you invest a significant amount into your buy-to-let property on things such as renovations, repairs, or furnishings?<\/li>\n<\/ol>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">The <\/span><b>income tax<\/b><span style=\"font-weight: 400;\"> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Income<\/strong><\/td>\n<td><strong>Tax rate<\/strong><\/td>\n<td><strong>Tax band<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to \u00a312,570<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Personal allowance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a312,571 to \u00a350,270<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a350,271 to \u00a3125,140<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Higher rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">over \u00a3125,141<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Additional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p>Here are the 3 outcomes possible, based on what your answers to the above questions are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You might pay more tax if removing the mortgage interest tax relief tips you into the <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/higher-rate-tax\/\">higher rate<\/a><\/li>\n\n\n\n<li>No significant change if you don\u2019t go into the higher rate<\/li>\n\n\n\n<li>You might benefit from carrying forward unused finance costs \u2013 see <a href=\"https:\/\/taxfix.com\/en-uk\/landlord-mortgage-interest-tax-calculations\/\">a detailed calculation of the changes in the mortgage interest tax relief here<\/a><\/li>\n<\/ul>\n\n\n\n<p><a href=\"\/en-uk\/tax-on-rental-income\/\" target=\"_blank\" rel=\"noreferrer noopener\">Read our guide to paying tax on rental income here<\/a> for more information.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Need more help to understand your options?<\/h2>\n\n\n\n<p>We can help. We offer one-off, personal tax advice from an accredited accountant, especially for landlords. Whether you\u2019re looking to be more tax-efficient, getting your head around the changes in rental properties or anything else, we\u2019ve got your back. Just \u00a3139 per consultation. <a href=\"https:\/\/taxfix.com\/en-uk\/tax-advice\/\">Learn more here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How did the mortgage interest tax relief change? Before 2017:&nbsp;The interest for your mortgage was 100% deductible. Since most individual landlords have interest-only mortgages, you could basically claim all mortgage repayments. That\u2019s because you pay only the interest each month and the price of the property at the end of the period. After 2017:&nbsp;The tax [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[456,452],"tags":[416,421],"class_list":["post-168","post","type-post","status-publish","format-standard","hentry","category-buy-to-let-landlords","category-landlord-tax-returns","tag-benefits-reliefs-grants","tag-property"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tax relief on mortgage interest explained &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"We explain the changing tax relief on mortgage interest that landlords of residential properties can expect.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax relief on mortgage interest explained &#8211; Taxfix\" \/>\n<meta property=\"og:description\" content=\"We explain the changing tax relief on mortgage interest that landlords of residential properties can expect.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/\" \/>\n<meta property=\"og:site_name\" content=\"Taxfix\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/taxfix_uk\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-29T11:53:15+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-02T17:03:12+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/eyJhc3NldF9pZCI6NTY3OH0_taxfix-gmbh_UwIjumOzeyPqNyDgJ1bVY_OROVADgg2mBtzSX1XQ7A0.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Gemma Doswell\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Taxfix\" \/>\n<meta name=\"twitter:site\" content=\"@Taxfix\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/\",\"url\":\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/\",\"name\":\"Tax relief on mortgage interest explained &#8211; Taxfix\",\"isPartOf\":{\"@id\":\"https:\/\/taxfix.com\/en-uk\/#website\"},\"datePublished\":\"2019-05-29T11:53:15+00:00\",\"dateModified\":\"2026-02-02T17:03:12+00:00\",\"author\":{\"@id\":\"https:\/\/taxfix.com\/en-uk\/#\/schema\/person\/008d0d859b00d5809e35d143dff5dd4a\"},\"description\":\"We explain the changing tax relief on mortgage interest that landlords of residential properties can expect.\",\"breadcrumb\":{\"@id\":\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/taxfix.com\/en-uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tax relief on mortgage interest explained\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/taxfix.com\/en-uk\/#website\",\"url\":\"https:\/\/taxfix.com\/en-uk\/\",\"name\":\"Taxfix\",\"description\":\"Taxes as they should be done\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/taxfix.com\/en-uk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/taxfix.com\/en-uk\/#\/schema\/person\/008d0d859b00d5809e35d143dff5dd4a\",\"name\":\"Gemma Doswell\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/taxfix.com\/en-uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/0ee123e7e4df1efafc651aa2721860dbf529c4458f2fd6d13cdb62e8f05ffc2f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/0ee123e7e4df1efafc651aa2721860dbf529c4458f2fd6d13cdb62e8f05ffc2f?s=96&d=mm&r=g\",\"caption\":\"Gemma Doswell\"}}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Tax relief on mortgage interest explained &#8211; Taxfix","description":"We explain the changing tax relief on mortgage interest that landlords of residential properties can expect.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/","og_locale":"en_GB","og_type":"article","og_title":"Tax relief on mortgage interest explained &#8211; Taxfix","og_description":"We explain the changing tax relief on mortgage interest that landlords of residential properties can expect.","og_url":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/","og_site_name":"Taxfix","article_publisher":"https:\/\/www.facebook.com\/taxfix_uk","article_published_time":"2019-05-29T11:53:15+00:00","article_modified_time":"2026-02-02T17:03:12+00:00","og_image":[{"width":1200,"height":628,"url":"https:\/\/taxfix.com\/en-uk\/wp-content\/uploads\/eyJhc3NldF9pZCI6NTY3OH0_taxfix-gmbh_UwIjumOzeyPqNyDgJ1bVY_OROVADgg2mBtzSX1XQ7A0.jpg","type":"image\/jpeg"}],"author":"Gemma Doswell","twitter_card":"summary_large_image","twitter_creator":"@Taxfix","twitter_site":"@Taxfix","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/","url":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/","name":"Tax relief on mortgage interest explained &#8211; Taxfix","isPartOf":{"@id":"https:\/\/taxfix.com\/en-uk\/#website"},"datePublished":"2019-05-29T11:53:15+00:00","dateModified":"2026-02-02T17:03:12+00:00","author":{"@id":"https:\/\/taxfix.com\/en-uk\/#\/schema\/person\/008d0d859b00d5809e35d143dff5dd4a"},"description":"We explain the changing tax relief on mortgage interest that landlords of residential properties can expect.","breadcrumb":{"@id":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-relief-on-mortgage-interest-explained\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/taxfix.com\/en-uk\/"},{"@type":"ListItem","position":2,"name":"Tax relief on mortgage interest explained"}]},{"@type":"WebSite","@id":"https:\/\/taxfix.com\/en-uk\/#website","url":"https:\/\/taxfix.com\/en-uk\/","name":"Taxfix","description":"Taxes as they should be done","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/taxfix.com\/en-uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/taxfix.com\/en-uk\/#\/schema\/person\/008d0d859b00d5809e35d143dff5dd4a","name":"Gemma Doswell","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/taxfix.com\/en-uk\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/0ee123e7e4df1efafc651aa2721860dbf529c4458f2fd6d13cdb62e8f05ffc2f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/0ee123e7e4df1efafc651aa2721860dbf529c4458f2fd6d13cdb62e8f05ffc2f?s=96&d=mm&r=g","caption":"Gemma Doswell"}}]}},"_links":{"self":[{"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/posts\/168","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/comments?post=168"}],"version-history":[{"count":27,"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/posts\/168\/revisions"}],"predecessor-version":[{"id":44640,"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/posts\/168\/revisions\/44640"}],"wp:attachment":[{"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/media?parent=168"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/categories?post=168"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxfix.com\/en-uk\/wp-json\/wp\/v2\/tags?post=168"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}