From 6th April 2017, there will be gradual introduction on the restriction of relief for finance costs on residential properties to the basic rate of income tax.
These new rules only apply to individuals with residential property businesses, they do not apply to companies.
Finance costs can include mortgage interest, interest on loans, or repayment of mortgage or loans.
Landlords will no longer be able to deduct all of their finance costs from rental income to work out their profits. There will now be a basic rate reduction from their income tax liability for their finance costs.
The gradual introduction will be over a 4 year period as follows: