Foreign Income 23 - Amount of residential property income or restricted finance cost associated with income in 'Taxable amount' above for calculating relief for residential finance costs

For the tax year 6 April 2020 to 5 April 2021, costs of getting a loan or alternative finance to buy a residential property that's let, and any interest on those loans and alternative finance payments cannot be claimed as a deduction to reduce income from property.

The costs of getting a loan or alternative finance to buy a residential property that is let, and any interest on a loan or alternative finance payment from each residential property business operated by persons abroad is used as a basis for calculating a reduction to your Income Tax.

Each person must be considered separately and each property business they carry on (for example UK property and foreign property) must be considered separately.

Any unused finance costs can be carried forward to following years.

For more information on the residential property finance costs restriction, go to Tax relief for residential landlords: how it's worked out.