is mortgage interest tax deductible uk?

For Residential Mortgages:

For Buy-to-Let Mortgages:

• Tax Credit System: Landlords can receive a tax credit, based on 20% of their mortgage interest payments, regardless of their income tax band. This change means higher-rate and additional-rate taxpayers no longer receive relief at their higher rates.

Considerations for Property Investors:

• Tax Credit Limitation: The shift to a tax credit system effectively reduces the tax relief for higher and additional-rate taxpayers.
• Structuring Investments: Some landlords have considered structuring their property investments through limited companies, as corporate entities can still deduct mortgage interest as a business expense. However, this approach comes with its own set of tax implications and responsibilities.

Seek Professional Advice:

Conclusion: