Landlord Self Assessment - Tax Relief

[david mcc]

Im an landlord of a single property (our first house we now rent out) but despite reading loads online and speaking to HMRC direct on the phone, I cannot work out where in the self assessment return this tax relief is entered or worked out.

I understand that I should get 20% tax relief on the interest part of my mortgage payments.

I already claim the £1000 property income allowance (I have very little repair / deductable costs)

Can anyone clarify how the interest tax relief calculated or added to your self assessment form?

Edited by david mcc on Wednesday 15th June 23:07

[Eric Mc]

The tax relief on loan interest (and other finance charges) is no longer claimed as a deduction against your rental income. Instead, you calculate 20% of the interest and charges and deduct it against the actual 20% tax you are paying.


On the 2020/21 Self Assessment tax form, you entered the total finance costs into Box 44 in the Property Income pages. This should ensure that the 20% deduction is made against your overall tax liability.

[Speed1283]

Anyone know if the early repayment charge/breakage fee is an allowable expense?

I had to change mortgage provider last year as my old lender wouldn't permit letting to a family member so I had to switch and incurred a fee (not a huge fee but still a cost).

Seems a little wooly when I've looked on the internet.