Petition · Department for Business and Trade
Allow mortgage interest to be deducted when calculating taxable rental income.
Open for signatures
5,864 signatures
What the petition asks
Allow mortgage interest to be treated as a deductible business expense when calculating taxable rental income, in line with standard UK business taxation principles and generally accepted accounting practice, helping support stable rental supply and avoid upward pressure on rents.
Current rules tax rental income before mortgage interest costs, with only a basic-rate credit applied afterwards. This can result in tax being charged on income not received in real cash terms. Most UK businesses can deduct financing costs when calculating taxable profit. The current approach for rental businesses departs from this principle and can discourage investment and reduce the supply of compliant rental homes, particularly where costs are rising.
Timeline
| 19 Feb 2026 | Petition opened for signatures |
Key facts
Signatures
5,864
Status
Open for signatures
Department
Department for Business and Trade
Opened
19 Feb 2026
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Source: the official petition page. Last checked 26 Jul 2026.