SA106 : Foreign Income: Residential Finance Costs

SA106 : Foreign Income: Residential Finance Costs

For the tax year 6 April 2020 to 5 April 2021, the allowable cost of getting a loan or alternative finance to buy a residential property that’s let, and any interest on those loans and alternative finance, is restricted to 0% of these costs for each property business. 

The remaining 100% of the finance costs (the ‘restricted finance costs’) from each residential property business operated by persons abroad is used as a basis for calculating a reduction to your Income Tax. 


To show this in box 13.1 of the SA106:


1. Click '+ NEW PAGE' and then select 'Foreign Income (SA106)' from the listed categories




2. Click on '+ INCOME'




3. Select 'Assets transferred/income abroad' from the drop-down list of categories




4. Fill in all of the required boxes then click 'SAVE' at the bottom




    • Related Articles

    • SA106 : Residential Finance Costs: Property Abroad

      For the tax year 6 April 2020 to 5 April 2021, the allowable costs of getting a loan or alternative finance to buy a residential property that is let ,plus any interest on those loans and alternative finance agreements is restricted to 0% of the ...

    • SA107 : Estate Income: Restricted Finance costs

      ​For the tax year 6 April 2019 to 5 April 2020, the allowable costs of getting a loan or alternative finance to buy a residential property that is let, and any interest on those loans and alternative finance, is restricted to 25% of these costs for ...

    • Partnership Property Finance Costs

      For the 2020 to 2021 tax year, you can only claim 0% of the cost of getting a loan, or alternative finance to buy a residential property that you let, and 0% of any interest on such a loan or alternative finance payments. 1. Click on '+ NEW PAGE' and ...

    • SA106 : Foreign Income: Property Income Allowance

      Full Relief - If your property Income is less than £1000, the property allowance provides for full relief from income tax  Not only is there no income tax to pay, but also no need to register with HMRC or file tax returns provided property income is ...

    • https://help.gosimpletax.com/hc/en-gb/articles/360001063604-Residential-Finance-Costs-Property-Abroad

      For the tax year 6 April 2018 to 5 April 2019 the allowable costs of getting a loan or alternativefinance to buy a residential property that is let ,plus any interest on those loans and alternativefinance agreements is restricted to 50% of the ...