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  3. Can I deduct mortgage interest from my rental income?
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  2. Self-Assessment
  3. Can I deduct mortgage interest from my rental income?

Can I deduct mortgage interest from my rental income?

No – since April 2020, you’re no longer able to deduct any of your mortgage expenses from your rental income to reduce your tax bill.


Instead, you now receive a tax-credit, based on 20% of your mortgage interest payments.

This is less generous than the old system for higher-rate taxpayers, who formerly received 40% tax relief on mortgage payments.

The new system has been phased in gradually since 2017.

Updated on 19th July 2023

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