This restriction, which has been well publicised through accountants and the property press applies to:
- UK resident landlords with residential rental properties, regardless of location; and
- Non-UK resident landlords with residential properties in the UK; and
- Partnerships and Trusts with residential rental properties.
By definition, this restriction in finance costs does not impact:
- Corporate entities; or
- Individuals investing in commercial property.
The restriction surrounding finance costs predominantly catches Mortgage Interest but for this purpose the restriction will also impact on:
- Mortgage arrangement fees;
- Mortgage early redemption fees or penalties;
- Interest on loans taken out to renovate or refurbish the property, as opposed to buying the property.
The next step
If this affects you and you would like to know more, then please contact either Brian Carey or your local UHY adviser.
