Tax Relief

Tax relief at the rate of 10% is available on interest on loans up to £30,000 (or the first £30,000 of a larger loan) to finance the purchase of a main residence in the UK. This limit applies per property, regardless of the number of individuals involved in the loan, and regardless of whether or not they are related.

For loans arranged prior to August 1988, the limit applied per individual, and mortgages arranged before that date which are still in existence continue to benefit from the old basis. After being reduced progressively over a number of years, it has been announced that this relief is to be withdrawn entirely from 6 April 2000, for both new and existing loans.