Residential mortgages vs BTL
Some landlords will rent out their residence with permission from their bank. This will affect their self assessment tax. Can LV put in a feature which takes residential mortgages into account, and dates effective from. The SA states “ if you let residential property, you cannot deduct interest and finance costs. Instead, relief is given by reducing your tax bill by 20% of your interest and finance costs. The interest and finance costs go in box 44. If you have any finance costs unused from previous years, these are entered in box 45.
If landlords are using the MTD function the tax calculation maybe wrong