This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.


Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Residential finance costs

Posts: 112
Joined: Wed Aug 06, 2008 3:31 pm

Residential finance costs

Postby Brightonian » Mon Jun 04, 2018 3:28 pm

I am preparing a return for a client whose total taxable income consists of rental income and is below the personal allowance. After deducting 75% of loan interest and normal expenses, I am left with profit of around £1,000. I have excess finance costs (the remaining 25% of loan interest paid in the year) of £700. As far as I can see, the amount taken into account is the lowest of the rental profit (£1,000), the relievable amount (£700) and the adjusted total income that exceeds the personal allowance (Nil). If I am right about this, the £700 interest can be carried forward to the following year and does not have to be used in 2017/18. Is this correct?

Return to “Property Taxation”