3 ms·
We can deduct far less than you can in the Netherlands - mortgage interest for example is deductible for you, but not in the UK. Someone on PAYE will have most
by philjohn 5y ago
We can deduct far less than you can in the Netherlands - mortgage interest for example is deductible for you, but not in the UK.
Someone on PAYE will have most of the deductibles handled by their employer (pension, any salary sacrifice schemes etc).
- teh_klev 5y agoIn the UK, deductibles on mortgage interest payments (known as MIRAS[0]) was abolished for private home owners in 2000. As a renter this kind of always stuck in my craw that homeowners got this preferential treatment and was quite glad it was abolished (even after becoming a "homeowner"). Oddly, buy-to-let landlords do retain this deductible, though HMRC have fiddled around with how this works over recent times[1]. [0]: https://en.wikipedia.org/wiki/Mortgage_interest_relief_at_source https://en.wikipedia.org/wiki/Mortgage_interest_relief_at_so... [1]: https://www.gov.uk/government/publications/restricting-finance-cost-relief-for-individual-landlords/restricting-finance-cost-relief-for-individual-landlords https://www.gov.uk/government/publications/restricting-finan...
- philjohn 5y agoYes, the BTL sort of makes sense though if you view the mortgage as a business expense, but BTL has had a distorting effect on the UK housing market for too long - changes are desperately needed here, but with so many Tory donors being housing firms, it's unlikely to happen.