Cornish Accounting provide affordable investment property accounting whether you are new to the rental market or have been in it a while to ensure you comply with the ever-changing tax laws. From individuals, partnerships, and trusts to companies with both residential and commercial property portfolios, we take care of your taxation obligations and assist you with property accounting advice to help you maximise your rental property returns.
Expenditure that can be claimed:
Expenditure that cannot be claimed:
From 1 October 2021, interest cannot be claimed for residential property acquired on or after 27 March 2021.
For properties acquired before 27 March 2021, the ability to deduct interest is being phased out between 1 October 2021 and 31 March 2025.
For more information on IRD property interest rules click here
How interest deductions are being phased for properties acquired before 27 March 2021
|
Date interest incurred |
Percentage of the interest that can be claimed |
|
1 April 2020 to 31 March 2021 |
100% |
|
1 April 2021 to 30 September 2021 |
100% |
|
1 October 2021 to 31 March 2022 |
75% |
|
1 April 2022 to 31 March 2023 |
75% |
|
1 April 2023 to 31 March 2024 |
50% |
|
1 April 2024 to 31 March 2025 |
25% |
|
On or after 1 April 2025 |
0% |
**Some properties are excluded from these rules and some exemptions apply
The Property interest calculator is a great tool to help work out how much interest is deductible, if your property is affected by the interests limitation rule.
The new-build interest apportionment calculator is a tool to determine how much interest is deductible if your property has both a new build and non-new build and you are required to apportion your interest deduction.
When your rental expenses for your residential property are more than your rental income you’re left with excess deductions. You’ll need to carry excess deductions forward into the next tax year you earn residential rental income.
LINK- Rental Income Guide – Tax rules for residential property and holiday homes