- This topic has 1 reply, 2 voices, and was last updated 1 year ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
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”
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