Questions and Answers
Can I claim relief for mortgage interest on a buy to let property?
I have a mortgage on a buy to let property, how much of the mortgage interest can I reclaim?
Last updated 2 Jul 2026 | First published 7 Jul 2017
By Helen Wood, CA 1 min read
Landlords
In the past, landlords could offset the interest for a mortgage on a buy to let property against the relevant rental income. Since 2020/21 relief has been limited to a basic rate relief tax deduction.
Higher and additional rate taxpayers are worse off as a result of the changes as their relief is now be restricted to a ‘tax reducer’ equal to the current basic rate of income tax.
For England, Wales and Northern Ireland the basic rate is 20% for tax year 2026/27. The same restriction on mortgage interest relief applies in Scotland, as it is a UK-wide rule, but Scottish income tax rates apply. For the 2026/27 tax year, the Scottish basic rate is also 20%.
For more information on what you can claim tax relief for see our guide for landlords here.
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Our team at TaxAssist Accountants is experienced in dealing with landlords’ tax affairs and would be happy to review yours and suggests any ways to save you tax. Call us on 020 3793 2199 or use our online contact form.
Frequently Asked Questions
Section 24, introduced in the Finance (No. 2) Act 2015, restricts mortgage interest relief available to individual landlords. Rather than deducting finance costs in full, individuals receive only a 20% tax credit. This significantly decreases taxable profits for higher-rate taxpayers. From April 2027, this credit will rise to 22% in line with the new property basic rate. Limited companies are exempt from Section 24. A company may deduct 100% of mortgage interest as a business expense before calculating corporation tax. For landlords, this difference alone can make the limited company route substantially more tax efficient.
Yes. Mortgage interest normally receives a 20% tax reducer rather than a full deduction if you are an individual landlord (not a limited company).
Last updated 2 Jul 2026 | First published 7 Jul 2017
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.
Helen Wood, CA
Helen is a qualified chartered accountant (CA) and joined TaxAssist in 2025 following three years as a freelance content writer for clients in the tax and accounting publishing sector. Prior to this, She spent 17 years at Big Four and Top 10 accountancy firms. Helen writes clear and helpful articles on tax and accounting for businesses and individuals.
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