Income Tax (Trading and Other Income) Act 2005 section 783BL

Exclusion from relief: tax reduction under section 274A

Section 783BL prevents individuals from claiming relief under Chapter 2 if they have already received a tax reduction for non-deductible mortgage interest costs on a residential property loan.

• Individuals who claim a tax reduction under section 274A for non-deductible dwelling-related loan costs cannot also claim relief under this Chapter.
• The exclusion applies for the entire tax year in which the section 274A tax reduction is used.
• The section 274A tax reduction relates specifically to mortgage interest costs on residential property that can no longer be deducted directly from rental income.
• The restriction prevents a double benefit where relief has already been given as a basic rate tax reduction at Step 6 of the income tax calculation.