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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Finance expenses (Prop Income)
Hello sir,
Lately watched property income lectures quite liked the eloquence and coherence of the lectures.
However as you said that”mortgage interest is not deductible, rather is given as a tax credit in computing tax liability”
Sir,
Net income-Paye= Taxable income × tax rates= Tax liabilities.
After finding tax liabilities we need to credit the PAYE and Mortgage interest right?
How can I credit mortgage interest in computing tax liability shouldn’t it be rather credited whilst computing tax liabilities?
Mortgage / loan interest is not deductible as a finance expense in computing the amount of property income to be charged to tax on the individual – but relief is instead given as a reduction in deriving the income tax liability as shown in the notes and example.
PAYE would then be deducted in deriving the income tax payable