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




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