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.