UK Property 28 - Non-residential property finance costs

Watch a short YouTube clip on loan interest and other financial costs.

Non-residential property

You can claim the costs of getting a loan or alternative finance to buy a non-residential property that you let, and the full amount of any interest on such a loan or alternative finance payments.

Residential property

For the 2020 to 2021 tax year, you cannot claim the costs of getting a loan, or alternative finance to buy a residential property that you let or any interest on such a loan or alternative finance payments. Any such costs can be used to calculate a reduction in Income Tax by putting the amount of residential property finance costs in the 'Residential property finance costs' box at the end of the 'Other property' section.

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