# Mortgage interest relief for investers now - You can now only claim only 75%



## landlord (10 Jul 2009)

I know in the last emergency budget that mortgage interest relief for residential investment properties was reduced to 75%, but when exactly did this kick in? Was it the 1st of January 2009?
I am trying to calculate my pre tax for the tax year 2009.


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## kev53 (18 Oct 2009)

Can anyone in the know answer this, I would also like to know! Does it kick in 1st Jan 2009, or May 2009 (when it was introduced/announced)??


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## papervalue (18 Oct 2009)

kev53 said:


> Can anyone in the know answer this, I would also like to know! Does it kick in 1st Jan 2009, or May 2009 (when it was introduced/announced)??


 

from 07/04/09


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## kev53 (18 Oct 2009)

papervalue said:


> from 07/04/09


 

Thanks papervalue. Just to be clear, this means interest payed up until 07/04/09 can be put 100% against income, and interest after 07/04/09 can be put 75% against rental income??


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## papervalue (18 Oct 2009)

kev53 said:


> Thanks papervalue. Just to be clear, this means interest payed up until 07/04/09 can be put 100% against income, and interest after 07/04/09 can be put 75% against rental income??


 
The above is the way I would treat it


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## anotherdub (4 Nov 2009)

*From A Revenue Guide to Rental Income - IT 70*



kev53 said:


> Can anyone in the know answer this, I would also like to know! Does it kick in 1st Jan 2009, or May 2009 (when it was introduced/announced)??





> *A Revenue Guide to Rental Income - IT 70*
> 
> *What is the position with regard to interest paid on borrowings?*
> 
> Where a loan has been used to purchase, improve or repair a rented residential property and the interest on the loan accrues on or after 7 April 2009 (Budget Day), only 75% of the interest on the loan can be deducted as a rental expense instead of the normal 100%. For the purposes of the restriction, the interest is treated as accruing on a daily basis. The date the loan is taken out is not relevant.


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